As of April 2019, the CRC Scheme (formerly known as the “Carbon Reduction Commitment”) finishes. This is a tax on carbon emissions for companies consuming over 6 Million kWhrs of energy per annum.
Most SMEs won’t see the significance of this. However, due to the CRC closure, because the Treasury likes to balance its books, all companies consuming energy will see a major increase in one of the carbon taxes on their Electricity and Gas bills - the Climate Change Levy (CCL).
The CCL increase from April 2019 is 46% on Electricity and 67% on Gas. This has potentially major impact on company efficiency and budgets.
However, there are schemes available that allow companies producing carbon fibre products (whether fabric, prepreg or finished products) to reclaim up to 100% of this tax from their energy supplier.
Composites UK is working with Briar Associates to assist eligible members in obtaining an exemption from the CCL. It’s a proven scheme for a lot of major producers-Automotive, Motorsport, Aerospace, but with this substantial increase, smaller producers can benefit from it as well. Sigmatex has already received a rebate of £54,000 through this scheme. Several other companies have received 5 or 6 figure sums, making a combined grand total of over £600k.
The scheme is allowing companies to retrospectively claim for the last for years, for each month you don’t claim, you’re missing out.
Contact Briar Associates on 01384 397777 for a no obligation discussion with an expert.