Budget Notes


Who is likely to be affected?

1. Electricity and gas suppliers.

General description of the measure

2. Legislation will be introduced in Finance Bill 2008 to remove the requirement that, in order to count as a climate change levy accounting document (CCLAD), an invoice issued by an electricity or gas supplier must contain wording identifying it as a CCLAD.

Operative date

3. This measure will have effect on and after the date that Finance Bill 2008 receives Royal Assent.

Current law and proposed revisions

4. Supplies of electricity and gas are continuous. The point at which climate change levy (CCL) should be accounted for on such supplies to HM Revenue & Customs is generally determined by the issue of an invoice (e.g., an energy bill). For CCL purposes, a bill relating to a supply of electricity or gas must contain information relating to the supplier, the customer, the date of issue, and the period and quantity of electricity or gas covered. The bill must also say whether it is a CCLAD by including on it the phrase "climate change levy accounting document", "CCL accounting document" or similar alternatives. As well as creating an accounting document for CCL, the CCLAD can also be used as evidence to support claims for bad debt relief by the energy supplier.

5. The removal of the requirement in paragraph 143(2)(a) of Schedule 6 to the Finance Act 2000 to identify electricity and gas bills as CCLADs, for them to count as such for CCL purposes, will have no effect on CCL accounting or claims to bad debt relief, as the other information required on the bill (described above in paragraph 4) will continue to be required and will be sufficient for these purposes.

6. Suppliers of electricity and gas that wish to continue to identify their bills as CCLADs can still opt to do so.

Further advice

7. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk