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Deadline for Climate Change Levy registration is fast approaching

New poultry entrants to the Government’s Climate Change Levy (CCL) have been warned that the deadline to join the National Farmers Union’s scheme is 31 July.

The CCL rates – a tax charged on gas, electricity, LPG, coal and coke – used by businesses is to rise next April, leading to a greater cost added to energy bills for businesses not holding a Climate Change Agreement.

CCL Scheme

For most businesses, the impact will be an electricity cost rise of around 3% and a gas cost increase of 7%.

The NFU’s CCL scheme gives up to 93% CCL discount on electricity and 78% on gas to qualifying businesses in the poultry, pig and protected horticulture sectors but producers need to be members to take advantage.

The NFU said: “If you rear poultry for the production of meat or eggs 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 union argues that it is worth joining the scheme because:

  • 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.

A poultry farmer using 350,000 kWh of import electricity and 45,000 litres of LPG would save annually just over £4,000 in 2017/8 (paying £605.71 under the Scheme compared to £4,608.10 if not a member) and £6,277.40 in 2019/20 (paying £630.36 compared to £6,907.75).

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