Calor Gas and VAT

[Admin]

Does anyone know about Calor not charging the full rate of VAT on cylinder rental agreements?

It appears that Calor have been charging 5% instead of 20%, and they have been doing it for years, was a maximisation of profit the reason or just a mistake, a mistake that went unchecked for years? It is difficult to imagine that a company of such standing, in business for nearly a hundred years, could get it 'wrong'. It must run into millions of pounds.

Has a deal been struck with HMRC, does carrying the Royal Warrant make Calor management immune from prosecution? Anyone could get HDQ'd for diddling the VAT. Calor now charge 34-35 pounds for the priviledge of using one of their cylinders, the bulk of which never gets re-paid.

Will someone at Calor be held responsible, looks highly likely that there will be another big corp coverup?

[Admin]

Accoring to Calor's website they still charge 5% VAT on cylinder hire agreement
http://www.calor.co.uk/customer-services/faqs/shop-faqs/

Extract from that page............

» Why is the VAT different on certain products?

At Calor we use two VAT rates depending on the type of product sold. The first is a standard rate of VAT currently charged at 20% for our appliances. The second is a reduced rate of VAT at 5%; this is applied to the LPG supplied in cylinders and the cylinder refill agreement.