Energy Guide
Members’ social and sports clubs are non-profit organisations. In certain circumstances, clubs may qualify for a reduced rate of VAT (5%) on energy supplies and, in addition, relief from the Climate Change Levy (CCL). Energy suppliers often categorise clubs as small businesses, but unlike most commercial businesses, specific VAT and CCL reliefs may be available where the conditions are met.
These reliefs are not applied automatically and must usually be claimed from the energy supplier.
Clubs and other non-profit organisations may be entitled to:
Where applicable, these reliefs can result in a meaningful reduction in energy costs.
Note: If the club is VAT registered, the VAT saving itself is not a benefit (as VAT is recoverable through the VAT return). In such cases, the saving arises from CCL relief only.
The following organisations may be eligible for the reduced rate of VAT on gas and electricity, and for CCL relief, subject to conditions:
In practice, most clubs exceed these usage thresholds. Eligibility is therefore more commonly determined by the extent of non-business use.
If non-business use accounts for at least 60% of total energy consumption, the entire supply may qualify for CCL exemption. This level of non-business use is unlikely to apply to most clubs.
Where non-business use is less than 60%, partial relief may still apply. In these cases, energy use should be apportioned. For example, if 35% of energy consumption is non-business, that proportion may be charged at 5% VAT, with the remaining 65% charged at the standard rate.
Supplies of fuel and power used for genuine domestic purposes qualify for the reduced 5% VAT rate. Where a steward’s accommodation is separately metered and used as a private dwelling, it should normally qualify for the reduced rate.
Yes. Claims can generally be backdated for up to four years. Any refund is normally made by the energy supplier and represents the difference between the standard rate of VAT and the reduced rate applied to qualifying use.
As noted above, the VAT element of the saving only benefits clubs that are not VAT registered.
Clubs seeking VAT and CCL relief must usually complete a VAT Declaration Form, available from their energy supplier or online via GOV.UK. Once submitted, suppliers typically take around 14 days to review the application and confirm the outcome.