The Climate Change Levy (CCL) and Business Energy

CCL Rates As of April 2015:

• CCL charges 0.554p for every kWh of company electricity used
• For gas, the CCL is 0.193p for every kWh of gas used by an eligible company.

Electricity CCL rates

Gas CCL rates

CCL applies to all businesses.

• For businesses that use less than (an average) 33 kWh of electricity per day, they are exempt from paying CCL and will also pay VAT at the 5% rate.
• For businesses that use less than (an average of) 145 kWh of gas per day, they are exempt from paying CCL and will also pay VAT at the 5% rate.

In addition:

• If you purchase enough energy to cover your needs from renewable energy sources - such as wind, solar or geothermal - your usage will be exempt from CCL.
• Domestic and charitable clients are also exempt from the tax.
• You may qualify for a partial exemption if you are an intensive energy user or a horticultural company. Such companies can be eligible for an energy decrease of 90% and gas, LPG, carbon and strong fuel decrease of 65%.

First, you should make sure you fit one or more of the requirements for exemption

• Are you a charity?
• Do you use household energy?

If so, one type of excellent news will cover both your decreased VAT rate and your exemption from CCL.

Download here your statement of VAT type.

This form can be used to declare your entitlement to a decreased VAT rate at qualifying premises as well as exclusion from the Climate Change Levy.

Once the VAT statement has been finished, your energy provider should be signed and published.

Please note that if you have changed provider since your last VAT statement, you will need to fill out a new statement to continue receiving decreased VAT and exemption from CCL.

You will also be needed to promptly tell your energy provider if your conditions alter that would impact your eligibility for this statement.

If there is, then the excellent news is that you may still be allowed to request an exemption, but there will be an inadequate VAT statement form to accomplish this.

Instead, HMRC will provide a document called the PP11, this is the method you need to use to educate your present company energy provider about the level of CCL relief they need to submit against your Climate Change Levy responsibility.

The PP11 is otherwise known as the Climate Change Levy Supplier Certificate and can be discovered by following the link below:

http:/www.hmrc.gov.uk/forms/pp11.pdf

Please note that before administering any CCL relief, your company energy provider is legally required to obtain this certificate.

In addition, you may need to finish the extra PP10 document, otherwise known as Climate Change Levy Relief Supporting Analysis, to support your business ' request for relief. This is designed to demonstrate your claim for relief through supporting assessment.

This can be downloaded using the following connection:

http:/www.hmrc.gov.uk/forms/pp10.pdf

We advise you to visit www.hmrc.gov.uk call the Excise Helpline at 0845 010 9000 for further assistance and guidance on this.