Guidance

Submit returns for Climate Change Levy

If you're an electricity producer or energy supplier, find out how and when to send HMRC your returns.

Returns

HMRC will send you a return form every 3 months for you to fill in and send back. The date you need to send it back will be shown on your return.

You must keep records that prove the amounts of levy you declare on your return are right.

Submit your return in the same way for both the main Climate Change Levy rates and the Carbon Price Support rates.

Send your completed return to:

HMRC
Central Collection Unit (AL)
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS99 1AS

If you find that your returns or records have errors, you must correct them.

Payment and penalties

You must pay the levy you owe by the date shown on your return.

HMRC could issue you a penalty if you’re late filing your return. You may also have to submit monthly returns in future.

Annual returns for small businesses

You’re a small business and can apply to make annual returns instead of quarterly returns, if:

  • you’ve been registered for the levy for at least 12 months and you’ve submitted at least 4 quarterly returns

  • your liability is unlikely to be more than £2,000 for 12 months

  • you’re not registered as a group or a division of a larger business

  • in the 12 months before your application, you’ve not stopped making quarterly returns (including for Carbon Price Support rates of the levy)

To apply, write to HMRC with details of:

  • the date of your registration

  • your registration number

  • your total liability for the past 4 quarters (including any Carbon Price Support rates of levy)

  • your expected total levy liability for the next year

  • the date you want your accounting year to start

If your liability was above £2,000 for the last 4 quarters you should also explain why you think it’ll be lower next year.

Published 18 December 2014