On a virtually daily basis, we encounter schools which have been given misleading advice with regards to VAT on energy bills, leading to possible penalties from HMRC. Often the advice is provided by ill-informed energy consultants seeking to claim a share of any reduced VAT liability, irrespective of the future potential liabilities they create.
This guidance note is intended to clarify an essentially straightforward piece of legislation. It is based upon a review commissioned by Powerful Allies and undertaken by leading Accountants, Bishop Fleming (copies available upon request).
VAT on energy supplies to Independent Schools
There are two levels of VAT applicable for electricity and gas supplies to Independent Schools and importantly these are applied at an individual meter level. For VAT purposes, it is not possible to amalgamate meters across an Estate
VAT for Day Schools
VAT for Boarding Schools