Net Zero Agenda – is your Strategy Tax Effective?

One of the issues we at Centurion have been championing recently, including at the recent British Universities Finance Directors Group (BUFDG) Tax conference, is the interaction of VAT and Environmental Tax and the Net Zero strategy. For our University clients it was a timely discussion as the recent Directors of Finance conference had very much focussed on how this strategy could be delivered with a 2030 deadline for Net Zero that their sector is driving for and as important, how that could be costed. At Centurion we have Mike Trotman who is – we think it’s fair to say – an expert in the environmental tax side and he led a very informative session at the BUFDG Tax conference on aspects such as Climate Change Levy – reliefs and costs etc – as well as the wider Carbon Credit trading issues, Aggregates Levy interaction on build projects etc.

The concern on delivery and the cost of achieving the Net Zero agenda is clearly out there – to quote one University Head of Finance – “there’s eight summers” left to work to deliver this objective which puts it into perspective doesn’t it?

Centurion has been spreading the Environmental Tax message across a range of sectors including our VAT Forums but also with external parties in the Construction sector – sessions on topics from the new Plastic Packaging Tax impact for all types of organisations to Climate Change levy for those looking to produce their own energy on site or Landfill Tax and Aggregates Levy issues around the reuse of materials on major civil engineering or construction projects.

We’re here to walk through your organisation’s Net Zero Strategy to highlight areas of cost management or reliefs that should be considered, whether you are a university, college, housing association, utility body, commercial business of any type – contact mike.trotman@centurionvat.com or your usual Centurion VAT contact to start that conversation.

HMRC rebuild resources to target VAT compliance
We’ve commented previously about HMRC reminders of the penalties at their disposal for a lack of compliance in respect of Making VAT Digital processes at any organisation and this interest in this compliance area seems to be very much on their agenda.

HMRC specialist teams across Public Bodies – Charities, Universities, Colleges, Housing Associations, Councils – have started to explain their plans for re-engaging across these sectors. The university sector may be the first to see this activity with a letter coming out to start that process. Areas they are wanting to concentrate on include:

• Making VAT Digital
• subsidiaries,
• PESM’s including Business/Non-business,
• RCP status of building and change of use
• Capital Goods Scheme
• Catering
• Expenses and Benefit in Kind
• Accommodation Benefits

It will be interesting to see if HMRC activity starts to increase across other sectors, but should your organisation have any concerns on the VAT or Environmental Tax front then do please get in touch with your Centurion Indirect Tax team.

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