CARBON TAX
NORTHERN IRELAND FIRMS ARE URGED TO CHECK THEIR LIABILITY WITH A NEW CARBON TAX ON IMPORTS OF CEMENT, ALUMINIUM, IRON AND STEEL APPLYING FROM JANUARY 1, 2027… New carbon emissions tax rules
Construction businesses in Northern Ireland importing goods such as cement, aluminium, iron and steel from outside the UK will face a new tax from January 2027. The Carbon Border Adjustment Mechanism (CBAM) taxes imports of highly-traded, carbon-intensive goods, supporting the UK target to achieve net zero by 2050. It may also apply to some goods produced in NI and exported into the Republic of Ireland or other EU countries. HMRC Head of CBAM Policy Peter Connell outlines what it means for businesses and what they can do to start preparing for it: What is CBAM? CBAM is a new tax designed to address the risk of carbon leakage by ensuring certain highly-traded, carbon-intensive goods imported into the UK face a comparable carbon price to equivalent goods produced in the UK. What’s happening from January 2027? From January 1, 2027, businesses importing into the UK specific goods from the aluminium, cement, fertiliser,
hydrogen, iron and steel sectors will need to begin keeping records.
from January 1, 2027, regardless of whether they will need to register for CBAM. Registration for CBAM will open on January 1, 2028. If the value of the goods imported is more than £50,000 for the previous 12 months, or you are expecting to import within the next 30 days, you will need to register with HMRC. How much do I pay and when? HMRC will publish further guidance on CBAM rates, default emissions values and monitoring, reporting and verifying emissions in the coming months. If you are registered for CBAM, you must submit a return – even if there is no tax to pay – and pay any liability for the January 1 to December 31, 2027 accounting period by May 31, 2028.
Keeping records of CBAM imports From January 1, 2027, businesses importing CBAM goods are required to keep records relating to CBAM goods they have imported. Records must be kept for six years. Businesses that do not keep adequate records relating to CBAM may be liable for penalties, so it’s important to find out what you need to do beforehand and to get it right. I use a carrier when importing, aren’t they responsible? No. If someone imports CBAM goods or completes the import declaration on your behalf, such as a customs broker, freight forwarder, haulier or tax agent, you may still be classed as the importer and therefore responsible for meeting CBAM obligations. I’ve started keeping records for CBAM. What happens next? Businesses importing CBAM goods into the UK must keep records of those goods
Businesses can check whether they need to register and what records to keep at: www.gov.uk Want to know more?
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