As the owner of a new business or a director of a limited company it is your duty to be aware of changes to the law, introduction of new legislation and other legal precedents which might mean required changes to the way your business operates. Many businesses find themselves in breach of the law without realising it and then risk facing hefty fines which can reach up into tens of thousands of pounds.
Legal Compliance is an important part of running any business. With the current trend towards protecting the environment, the Government are keen to encourage businesses to be “green” and reduce their carbon footprint. The Carbon Reduction Commitment Energy Efficiency Scheme is part of that undertaking.
Carbon Reduction Commitment – What Does It Mean?
With the new scheme in place, businesses are expected to monitor their efficiency. This means that if your business consumes a great deal of power (around 6,000 megawatt hours per year) or produces significant emissions, then you will need to keep track of your emissions. A limit is set by the environment agency and a business is now required to “purchase allowances” to emit carbon dioxide.
This scheme is mandatory and could potentially affect many businesses. Those businesses that qualify are required to register as a CRC participant. Failing to comply can result in a fine of £5,000 for initially failing to register by the deadline (30th September) with an addition fine of £500 a day, up to a limit of £45,000.
Knowing Your Legal Obligations
Keeping up-to-date with the legal obligations placed on your business or limited company can be a very important part of running the business. Failing to do so could result in fines, penalties and even criminal charges. With the Carbon Reduction Commitment scheme, even small businesses are affected. According to the Environment Agency, a great number of businesses who are required to register have failed to do so.
At times like this, with the uneasy nature of the economy, the last thing you want is a fine for your business. More information about the Carbon Reduction Commitment can be found at the Environment Agency’s website.
We’re often updating our Legal Compliance articles to keep new businesses and SMEs up-to-date with changes to the law, some particular points you might want to bear in mind include:
- Data Protection Notification – Your legal obligations
- Director Service Contract – Legal Employment Obligations
- Accounting Requirements – Legal Obligations and Criminal Offences
- Company Compliance – Avoiding Government fines
- Company Directors Responsibilities and Duties
- Accounting Compliance – Fulfilling Your Duties With The Tax Man
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