Why we need to act
Climate change is a very real problem. Left unchecked, it could have a devastating effect on our future.
The government introduced the Climate Change Levy (CCL) to help reduce greenhouse gas emissions, a principal cause of climate change.
As a tax on the amount of energy you use, the CCL is designed to promote energy efficiency and encourage investment in energy saving equipment.
Are you exempt?
We collect the CCL from our customers on the government’s behalf. The tax affects most businesses and public sector bodies paying VAT at the standard rate.
You are exempt from CCL if you have signed up to a “green contract” (i.e. renewable source energy) or your consumption is for Domestic or Charitable non-business use. Your organisation may also be fully or partially exempt if it is defined as an energy intensive user, a horticulture user or a transport user.
For more specific information on exemptions, contact DEFRA on 08459 33 55 77 or visit www.hmrc.gov.uk.
CCL on your bill
If you are liable for the CCL, it will be shown separately on your bill. You may notice that you will also be charged VAT on the levy. You cannot claim back the CCL, but you can claim back the VAT, subject to standard restrictions.
It’s working
The good news is that the UK is on target to reduce green house gas emissions by almost 20% versus 1990 levels. Another positive is that the CCL you pay will be spent on energy saving initiatives and capital allowances for companies to invest in energy saving equipment.
Easier to be green
Being green may not be easy, but at least it is now more economically viable. Your business could be exempt from the CCL and save money simply by choosing our Business First Green Saver Contract.
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