Being environmentally contious has more benefits than just saving the planet because you can save money by knowing the tax benefits available to your organisation, here are some of the things you can do:
Investing in energy-saving or water conservation equipment qualifies for 100 per cent first-year capital allowances. This means you can off-set the entire cost of new plant and machinery against your taxable profit and improve cashflow.
Eligible products include:
Include all claims as part of your normal tax return.
You should keep copies of invoices, dated screen prints from the HM Revenue & Customs (HMRC) Enhanced Capital Allowance (ECA) website, transport costs of the equipment and paperwork from the company that installs the equipment.
Buying low-emission company cars and vans also qualifies for 100 per cent first-year capital allowances. Low-emission vehicles also qualify for reduced or zero rates of road tax (vehicle excise duty) and discounts on company car tax.
Sourcing energy from green suppliers qualifies you for tax relief on the Climate Change Levy.
The Carbon Trust offers SMEs interest-free loans of between £5,000 and £100,000 to replace or upgrade equipment with more energy-efficient versions.
Check private or local-authority environmental grant schemes for subsidised ways to update your machinery and equipment.
- automatic monitoring and targeting equipment for energy at work
- boiler equipment
- combined heat and power machinery
- Heating, ventilation and air-conditioning controls
- pipework insulation and refrigeration equipment
- solar screens and heating systems
Find products eligible for ECAs on the HMRC ECA website
Read about the Carbon Trust’s Energy Efficiency Loans on their website
Source: HSBC – source green suppliers and equipment
Disclaimer: This is not tax advice. Please do not act on this information without seeking professional advice.