subject: Tackling Climate Change - Climate Change Levy [print this page] Author: Ricardo Alan
The CCL is an environmental energy tax that adds approximately 15% to a typical energy bill.
The CCL is taxable on commodities' such as lighting, heating and power used by industrial commercial customers.
'Taxable commodities' include:
> Electricity
> Natural gas (as supplied by a gas supplier)
> Petroleum and hydrocarbon gas in a liquid state
> Coal and lignite
> Coke and semi-coke of coal or lignite
> Petroleum coke
The levy does not apply to taxable commodities used by domestic consumers, or by charities for non-business use.
Are you exempt?
There are a number of reasons why you would be exempt from such a tax. These include being a charity, being a renewable energy user, or a company that have entered into agreements with the government to receive discounts in return for energy efficiency targets.
How is the Climate Change Levy calculated?
The levy has a separate rate for each category of taxable commodity, as is a follows:
> Electricity = 0.0043 per kilowatt hour
> Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility = 0.0015 per kilowatt hour
> Any petroleum gas, or other gaseous hydrocarbon supplied in a liquid state = 0.0096 per kilogram
> Any other taxable commodity = 0.0117 per kilogram
What do I need to do?
If you are in business and are making or intend to make taxable supplies, you need to contact HM Revenue & Customs and register for the Climate Change Levy.
Can I get a discount?
Customers in energy-intensive industries who have entered into Climate Change Levy agreements with the government can get an 80% reduction of their CCL. To claim the 80% discount, you will be required to fill out a PP10/PP11 certification and send a copy of the certificates to HM Revenue & Customs and to your energy supplier before the discount can be arranged.About the Author:
British Gas Business offer a range of products and services tailored to the business market, including fixed price energy contracts, boiler and central heating services, an online business insurance comparison service, and a connections and metering service for new energy supplies, conversions and upgrades.
