New Tax Rules Can Mean Big Savings for Data Centres

Organisations which use over 6 million kWhs of electricity per annum legally have to join the Carbon Reduction Commitment Energy Efficiency Scheme (the CRC). This means that they have to pay a tax on the carbon emissions they generate. Currently it is about £16 per ton, but does vary. If you are in the CRC, the tax will be applied to your carbon emissions from both electricity and gas at all your sites, not just your data centres.

If you were just over the threshold and consuming only 6 million kWhs of electricity per annum your carbon tax would be about £48,000 per annum. In June of this year HMRC changed the rules which apply to data centres. Under certain circumstances they can escape from paying the carbon tax.

It may also be possible to get reductions of up to 90% on the Climate Change Levy (CCL) on electricity and up to 65% on the CCL on gas. That can mean further significant savings.

Business Cost Consultants have been working on these matters for over 19 years. They are independent consultants with clients all over the UK. Due to the complexities involved, BCC is working with a top UK tax expert on a project to advise those running data centres. Sometimes it is necessary to restructure a company to gain full advantage from the recent changes in the rules. The tax expert can advise on those matters.

BCC is working with ScotlandIS to offer advice on whether you come within the new rules and how you can take full advantage to reduce your energy taxes. BCC can also assist with energy procurement and reducing energy consumption. There is no charge for their initial consultation. They are willing to work on either on a fee or a contingency basis, if they think savings can be achieved for you.

For an initial consultation, to find out if you can benefit from the recent changes to the rules, please contact Donald Maclean, Managing Director of Business Cost Consultants on 0141 226 8525 or

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