Westminster City Council has saved £93,599 on its bills after “errors” on its electricity invoices from British Gas were discovered.
The council was charged too much on its VAT rates for six of the City’s schools. It was asked for 20% VAT rather than 5% and charged for the Climate Change Levy even though schools are exempt from this.
Software experts at TEAM Bureau – which helped identify the error in January 2012 – said it was quite common. A spokesperson said: “We find that for quite a lot of customers, utility companies have the wrong VAT rates.”