The Climate Change Levy (CCL) is a tax charged on gas, electricity, LPG, coal and coke used by businesses in the UK.
In April 2019, CCL rates levied on energy bills will increase, leading to a greater cost added to energy bills for businesses not holding a Climate Change Agreement (CCA).
On the other hand, larger discounts will be made available through the CCL scheme, ensuring that members of the scheme are protected from the increase.
Why join the NFU CCL scheme?
- The current rate of 90% relief on CCL paid on electricity will rise to 93% in 2019.
- The current rate of 65% relief on CCL paid on natural gas, LPG and coal will rise to 78% in 2019.
- With CCL rates increasing in 2019, members of the CCL scheme will see a greater financial saving on tax paid.
- Being part of the scheme demonstrates to customers that your business has official energy saving targets and is committed to improving its energy sustainability.
Below is an example of how much a horticultural grower using 200,000 kWh of import electricity and 2,000,000 kWh of mains gas would save annually:
|Non-member pays:||CCL member pays:||Saving:|
If you grow crops within an environment-protected structure, you are able to receive a tax discount in return for meeting agreed energy efficiency targets under the NFU CCL Scheme. Achieving these targets will enable you to receive a discount until March 2023.
The deadline for new or re-entries into the scheme is 30 October 2018 but you will be required to submit your application by 30 June 2018 to allow sufficient time for approval.