Climate Change Levy

What Is The Climate Change Levy?

In 2001, a Climate Change Levy was introduced as an energy tax payable by all businesses. The Government Levy is an environmental tax charged on energy that businesses use; this was launched with an aim to encourage businesses to reduce their emissions and become more efficient with their energy usage.

However, although the levy was introduced for all businesses, certain organisations such as charities or non-profit organisations, may qualify for relief.

You can now find out whether this applies to you.

Low Energy Usage Business Or Non-Domestic Use

If your energy usage is classified as ‘low’, you will qualify for a reduced rate of VAT and an exclusion from the CCL charge.

You will be classified as low usage if:

• You use less than 1,000kWh of electricity per month, or 33kWh per day

• You use less than 4,397kWh of gas per month, or 145kWh per day

Domestic Or Charitable Non-Business Use

You can qualify for both a reduced VAT rate and for exclusion from the CCL if your energy supply is used partially or wholly for domestic or charitable non-business purposes.

Criteria:

• Registered charity

• Have your charitable status recognised by HMRC

• You are a non-profit or charitable organisation.

Business Or Non-Domestic Use

If your energy supply is used solely non-domestic or for business purposes, you will be charged:

• VAT at the standard rate

• CCL

• VAT on CCL

Book a consultation with one of our experts.

Mixed Use

If your organisation operates with a mix of activities, some may meet the government’s criteria for domestic or charitable non-business use, you’ll need to estimate how to split your usage. If 60% or more of your energy usage meet domestic or charitable non-business criteria you may have a claim. Your entire energy supply is charged at the reduced rate of VAT and you will be excluded from CCL.

To find out if you qualify for Climate Change Levy Relief, please fill in the form below and we will be in touch!