Guidance: Register for Climate Change Levy

Who should register for the levy

If you supply taxable energy commodities, use them yourself for your business or supply them to other areas of your business (self-supply) you must:

• register with HMRC

• keep records

• fill in regular returns

• include the charge on invoices (for energy supplies)

• pay the levy to HMRC

As a supplier, you must charge the levy if your customer’s business is in any of the following sectors:

• industrial

• commercial

• agricultural

• public administration

All supplies to domestic users, non-business users and charities are excluded from the levy. If you only make exempt or excluded supplies you do not need to register.

If you operate a combined heat and power station, you need to register for the levy.

Taxable energy commodities

There are 4 types of taxable commodities, they are:

• electricity

• natural gas

• liquified petroleum gas, including any other hydrocarbon gas in a liquified state

• coal and lignite, including coke, semi-coke and petroleum coke

You must charge the levy when you:

• supply these commodities to business consumers

• use some of the commodities yourself

• use a commodity to generate electricity

When and how to register

You must register with HMRC within 30 days of the date you make, or intend to make, your first taxable supply or self-supply.

To register, you need a Government Gateway user ID and password. If you do not have a user ID, you can create one when you register.

Use the online service to register.

If you cannot register online you can register using the postal form.

You’ll need to fill in the form on screen, print it off and post it to HMRC.

If you’ve not registered on time, HMRC could issue you with a penalty.

You might need to fill in extra forms if your business is set up as either a:

• partnership

• trust

• group

Partnerships

You’ll need to fill in the partnership details form as well as the standard registration.

Trusts

The standard registration form should be filled in by the trustees or beneficiaries.

You’ll also need to fill in the:

• trustee details form

• beneficiaries form

Register as a corporate group

You can register your company and other individual companies as a group through one representative member.

Your group’s representative member must then account account for the levy as a sole company would, as well as:

• all taxable fuel movements between members of the group

• self-supplies made by group members

Register your group

To register as a group, you’ll need to fill in the:

• normal Climate Change Levy registration form for a sole company

• application for group treatment form

• group member details form

Group liability

Every member of your group is jointly and severally liable for any levy due from the representative member. This means your group’s members are responsible together, and individually responsible, for the group’s payments.

Control of your group

Your group must be controlled by one of the following:

• a company within the group

• an outside company

• an individual

• a partnership

Register as a division

You can apply for divisional registration if it would cause your company difficulty to submit a single return.

All divisions of your company will have a separate registration number. You’ll then need to submit a separate return for each division. The levy will be applied to movements between divisions.

Each division must:

• be an independent unit

• have its own accounts

• operate in a different location to other divisions

You’ll not pay the levy on movements of taxable fuel between divisions.

If any of your divisions use the taxable fuel, the levy will be due. The division using the fuel is responsible for the levy.

For each division you want to register, also fill in a separate divisional registration form.

You should also include a letter written by, or on behalf of, the corporate body explaining why you want to register each division separately.

Importers

If you’re a UK resident and you import taxable commodities and supply them to end-users, or you’re the end-user, you need to register for the levy.

You do not need to register if you import supplies and both:

• do not use them yourself

• only supply them to wholesalers or retailers (not end-users)

You need to get notifications from your customers that state they intend to supply the commodities to their own customers.

Businesses based outside the UK

If you’re not resident in the UK, and you’re not a utility, the person you supply should register.

Once you’ve registered

When we’ve processed your application, we’ll tell you your registration number on a registration certificate.

If you do not hear from us within 3 weeks of submitting your application, contact the helpline.

When you get your certificate, check that all the details are right. Tell us about any errors through the helpline.

The certificate will tell you when your returns are due and when you should pay the levy.

Rates

The levy is charged at different rates for each unit of energy and for each of the 4 groups of taxable commodity.

Change your registration details

Write to HMRC within 30 days if:

• your business details change

• you need to cancel your registration

You could get a penalty if you don’t tell HMRC on time.

Records you must keep

You should keep business records for 6 years. They must be available for us to see whenever we need to.

Annual accounting

Small businesses may be able to submit annual returns.