ESOS and business energy tax
New energy tax
In 2018, your company will be subject to a new energy tax. This combines all existing energy taxes and other appropriate energy schemes, such as ESOS, under one umbrella tax structure.
This will include:
- CRC (Carbon Reduction Commitment)
- GHG (Greenhouse Gas)
- CCA (Climate change agreement)
- ESOS (Energy Savings Opportunity Scheme)
Some of these taxes are already being phased out in preparation for the new tax. ESOS will now be a yearly obligation, and although it was introduced as a European requirement, will not be affected by Brexit.
This new tax will be presented through a mandatory reporting mechanism that will show the cost of your energy bill, and how much of that cost is tax.
How to prepare for this change
You can minimise your energy tax liability by substantially reducing your company’s energy consumption. Your company and energy managers, working alongside knowledgeable electrical contractors, now have the opportunity to introduce energy saving schemes in order to reduce your energy consumption, ready for the new tax in 2018.
Interest-free Government funding is available to the public sector to help achieve energy efficiency, lowering energy bills. This includes:
- Funding for Local Authorities, Higher and Further Education Institutes, NHS Trust and Foundation Trusts for energy efficiency projects
- Partial or full funding
- Support on energy efficient technologies
Private sectors can also receive finance solutions, covering off capital expenditure. This is being financed through manufacturers, offering manageable repayments over a 5 year period from the savings – in some cases giving you a net saving!
GCL have extensive experience providing a range of energy saving services to all sectors. Our expert team will work closely with your business to determine the most efficient energy saving solution. To see how we can help you prepare for this new energy tax, give us a call on 020 3906 6070 or email our team at email@example.com.
You can find more details about ESOS on the Government’s website: https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos
Please note this information is subject to regular changes, and you are advised to check the above website for updates.
This information is up to date as of March 2017. As legislation is being updated rapidly, we recommend you visit www.gov.uk/green-taxes-and-reliefs for reliable energy tax information.