
Only Pay 5% VAT On Utilities For Care Homes & Charities
Wednesday, October 29, 2025
Did you know not all organisations are liable to pay the standard 20% VAT rate & the Climate Change Levy on their supply of electricity and gas? There are quite a number of businesses who provide “residential accommodation” that are eligible for the reduced 5% VAT rate according to HMRC. These include:-
- Caravan parks.
- Children’s Homes.
- Homes providing care for elderly, disabled, dependency or mental patients.
- Hospices.
- Self catering holiday accommodation.
Additionally, all not-for-profit charities are entitled to pay the reduced 5% VAT rate.
But not many utility suppliers will tell you how to claim this reduction, and this is where we can help you to save those precious pennies. So give us a call at ClearlyNetZero.com (01524 259 200) and we will do all the hard work for you. Thanks, Jon
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