A number of business groups have expressed worry over the consequences of the new “Green Tax”.
The Carbon Reduction Commitment (CRC) requires companies to keep track of their carbon emmissions. It’s thought that this measure will be the first step that will see the UK move towards a system of carbon trading.
Small businesses are faced with paperwork for the new “Green Tax”, to be completed by 2nd September (for the 30th September), ready for the tax coming into force in April 2011.
The Green Tax will see rewards being offered to businesses that cut their carbon emmissions, and severe penalties for those that fail to take action.
It has been suggested that over 5,000 small businesses will be required to adhere to the new laws. Eligible companies that do not register by the September deadline will incur a £5,000 penalty, plus an additional fine of £500 per day that they remain unregistered, up to a possible total of £45,000. Certainly not a fee any small business wants to be faced with in an uncertain economic climate.
A number of experts have suggested that, in spite of this, the cost of complying with the new laws could be potentially very high. It’s believed that small businesses could be faced with spending at least £20,000 in the first year of the tax to ensure they are compliant.
The obvious costs to a business and the growing amount of paperwork, the Government promised to cut, has caused growing concern throughout the small business sector. It’s also thought that it could prove incredibly difficult for small business owners to determine their firm’s energy usage, a major requirement for registering for the CRC programme.
Bob Jarrett, of the BHF-BSSA Group, commented:
“We’ve only come across this in the last few weeks, and yet the deadline is at the end of next month. The Department for Energy has not given this nearly enough publicity.”
For more information about the Green Tax and what you need to do, please visit:
Other related articles: