CLIMATE CHANGE LEVY

WHAT IS IT?

The “Climate Change Levy” is a new tax charged on each kWh of electricity, gas or coal used by U.K industry and commerce.

HOW IS IT COLLECTED?

By your supplier of electricity, natural gas, LP gas or coal increasing the price of the energy that you use after 1st April 2001.

CLIMATE CHANGE LEVY CALCULATOR

To calculate the actual likely increase in energy costs for your company use our simple calculator
 

Click Here to calculate your tax

WHAT DOES IT COST?

The average energy bill is likely to rise by 10-20%. There will be an increase of 0.43p for each kWh of electricity used. There will be an increase of 0.15p for each kWh of natural gas used. There will be an increase of 0.15p for each kWh of coal used. There will be an increase of 0.07p for each kWh of LP gas used. (Mineral oils are exempted as they are already taxed in a different way)

HOW CAN LANEMARK HELP?

  Click Here to find out

WHY WAS IT INTRODUCED?

To encourage companies to become more energy efficient, thus reducing the overall amount of CO2 emitted (the main constituent of “greenhouse gas”).

IT IS SUPPOSED TO BE A NEUTRAL TAX – HOW?

The U.K Government will reduce the employers’ National Insurance contributions by 0.3% for those companies who are paying the levy.

WILL THIS WORK?

Probably not!! In manufacturing industry energy is a significant proportion of production costs and therefore the cost of the new tax is likely to exceed the reduction in National Insurance payments.