Budget Briefing Update – 16th March 2020

Budget Briefing Update - CCL and CCA

Changes to the Climate Change Levy (CCL) main rates from 1st April 2020 will be accompanied by changes to the reduced rates for participants in the Climate Change Agreement (CCA) scheme. The reduced rate changes aim to limit the change in CCL liability for CCA participants to broadly RPI only. 

CCA participants need to review and submit revised PP10 and PP11 forms as early as possible after 31st March 2020. Submitting the forms quickly reduces the risk of overpaying or underpaying tax which would then have to be put right via the correct process which could delay a claim. 

As you are probably aware, forms PP10 and PP11 are used to obtain various reliefs from CCL, including the reduced rates. Form PP10 helps calculate the percentage of relief entitlement and is sent to HMRC. Form PP11 requires the overall percentage calculated by the PP10 and is sent to the supplier to apply the appropriate amount of relief to energy bills. 

From 1st April 2020 a new PP10 will be available. The revised form contains an extra question confirming the date of the claim which should ensure the correct new discount percentage is calculated for CCA participants.

If you are a CCA participant, please complete the new PP10 and PP11 and send them to HMRC and your supplier respectively as soon as possible after 31st March 2020.

Climate Change Levy Main Rates

Taxable Commodity Rate from 01/04/2019 Rate from 01/04/2020 Rate from 01/04/2021
Electricity (£ per kWh) 0.00847 0.00811 0.00775
Natural gas (£ per kWh) 0.00339 0.00406 0.00465
LPG (£ per kg) 0.02175 0.02175 0.02175
Other taxable commodity (£ per kg) 0.02653 0.03174 0.03640

Climate Change Levy Reduced Rates

Taxable Commodity Rate from 01/04/2019 Rate from 01/04/2020 Rate from 01/04/2021
Electricity 93% 92% 92%
Natural gas 78% 81% 83%
LPG 78% 77% 77%
Other taxable commodity 78% 81% 83%

If you have any questions regarding the Spring Budget and how it may affect you, please do not hesitate to contact us on 01293 521 350 or at info@2ea.co.uk.

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