Deadline for Climate Change Levy registration is fast approaching

15-06-2018 | |
Photo: Dreamstime
Photo: Dreamstime

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).

Tony Mcdougal Freelance Journalist