Could you be caught out by SECR Reporting?
Do you have more than 250 employees? Greater than £36 million in annual revenue? A balance sheet greater than £18 million? Then you could be liable to compulsory annual reporting for the Streamlined Energy and Carbon Reporting legislation (SECR), that has been in place since April 2019. In fact, nearly 11,800 businesses in the UK could be at risk of being liable to report for this legislation (Carbon Trust, 2019).
What is SECR?
In short, the legislation requires organisations with two out of three of the above factors to annually report their energy consumption and carbon emissions within the business. This requires a lot of time to be able to ensure accurate readings.
Two of the following factors:
More than 250 employees
- Greater than £36 million in annual revenue
- A balance sheet greater than £18 million
What needs to be reported for SECR
The legislation is fairly complex, but the following factors must be reported for SECR:
Scope 1 and 2 emissions
Some travel-related Scope 3 emissions
Associated energy and fuel data
Previous year’s figures
Energy efficiency actions
Failure to comply with SECR
Failing to complete the reporting requirements can lead to large fines or prison sentences for company directors responsible of submitting the annual reports.
Most businesses are fairly well placed to report on the Electricity and Gas consumption, after all it is on their bills or contained in their half hourly data feed, but how does a business report on its energy usage in transport, grey fleet or even plant and machinery?
Going digital is the solution
You’re not in this alone! Imagine having some support with your reporting, to save the manual paperwork and the administration time. The perfect solution for this it to implement a telematics system onto your fleet of vehicles, that will provide useful data to assist with your reporting.
The ABAX Triplog can provide data around:
Fuel consumption reduction
Reporting Co2 emissions
Grey fleet management
It is important to note that the annual reporting must be completed in the same format every year, so a change from a manual process to an electronic process is accepted by the auditors, however it is difficult to reverse from an electronic process back to a manual one, as it is therefore deemed inaccurate.
ABAX are not tax advisors. It is therefore recommended that you contact your tax advisor to understand the many exclusions to the legislation.
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