How will the climate change levy increase hit UK holiday parks?
With free CCL reclaims averaging £8501 this is a popular area of interest for my park customers.
If you pay 20% VAT you are charged CCL on electricity natural gas and bulk lpg – however there is generally no need to pay this tax since there is a special exemption for most parks allowing 5% VAT thus avoiding any CCL charge in future.
Interestingly parks could claim a maximum four year CCL rebate (averaging £8500 as mentioned above)
With the Carbon Reduction Commitment (CRC) for large energy users due to be scrapped, the taxation burden will shift to the vast majority of businesses across the UK. Those parks who are needlessly paying CCL will pay even more in 2017, 2018 – and a big jump due in 2019.
The cost will be mounting, from just over 0.6p per KWH of electricity to almost 0.9p per unit applied to park electricity (and a lower rate increase hitting natural gas and bulk tank LPG supply bills). Do not underestimate how much this could cost in the longer term.
excerpt from gov.uk site :
“This measure increases the main rates of Climate Change Levy (CCL), for 2017 to 2018, 2018 to 2019 and 2019 to 2020.
For 2019 to 2020, the balance between rates on taxable commodities will be updated to reflect changes in the fuel mix used in electricity generation and the increase in main rates of CCL will recover the tax revenues lost by closing the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. In addition, the reduced rates of CCL for qualifying businesses in the Climate Change Agreements (CCA) scheme will be amended so participants will not pay more in CCL than they would under the currently expected Retail Prices Index (RPI) increase for that year.
In line with usual practice, CCL main rates for 2017 to 2018 and 2018 to 2019 will be increased in line with RPI to maintain the price signal.”
Find out more
Call Adam Beckett on 07930505482 for no cost advice on how to reclaim CCL
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