Friday 15 July 2016

Is your business participating in the energy efficiency tax consultation?

Is your business participating in the energy efficiency tax consultation?

Around 39% of retailers don’t intend to participate in the government’s next energy efficiency tax landscape consultation.

That’s according to a survey by npower Business Solutions which questioned 100 retailers on the government's plans to abolish the CRC Energy Efficiency Scheme while increasing the Climate Change Levy.

The initial consultation, launched last September, is part of the government's plans to simplify and move away from overlapping policies towards one where businesses would face just one tax and one reporting scheme.

The survey also revealed 39% of respondents are not aware further consultation is due to take place soon.

Furthermore 66% said a planned move to a single energy efficiency tax and a simpler new reporting scheme will incentivise investment in energy efficiency.

A total of 90% of retailers agree the introduction of a single energy usage tax would encourage them to keep their business within the UK and 88% believe it will help them stay competitive.

However 97% still feel more needs to be done to reduce red tape for business.

David Reed, Head of npower Business Solutions said: “The current regime of taxation and reporting requirements have become unwieldy and in some aspects counterproductive. This is a unique opportunity to right some wrongs. Changes to the Climate Change Levy’s rates will negatively impact business if firms aren’t fully aware that they need to prioritise energy efficiency. Transparent communication is vital here."

Written by

Bruna Pinhoni

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