The Government has introduced a scheme where your business can potentially right off the cost of installing eco heating/cooling equipment against pre-tax profits, potentially saving your business thousands of pounds.
Energy saving equipment can improve cash flow
Enhanced Capital Allowances (ECAs) are a smart way for a business to improve its cash flow through accelerated tax relief. The ECA scheme for energy saving technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL). The ETL is managed by the Carbon Trust on behalf of the Government.
The ECA scheme provides businesses with 100% first year tax relief on qualifying capital expenditure. The ECA scheme is only valid for energy saving technologies which are on the ETL. The scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can give a cash flow boost and an incentive to invest in energy saving equipment which can be slightly more expensive than less efficient alternatives.
How the ECA scheme works
Let’s say your business pays corporation tax at 28%, every £1,000 spent on qualifying equipment would reduce its tax bill in the year of purchase by £280.
In contrast, for every £1,000 spent, the generally available capital allowance for spending on plant and machinery could reduce your business’ tax bill in the year of purchase by £56.
Put simply, an ECA could provide a cash flow boost to your business of £224 for every £1,000 it spends in the year of purchase.
Duchy eco heating is able to advise on this and the list of products on the energy list produced and updated by the dept of energy and climate change. This applies to a lot of air conditioning and heat pump installation in Cornwall and we will be pleased to advise you of the current products on the Governments list
- Please download further information here
So if you are looking for an air conditioning contractor in Cornwall we will be pleased to quote you for any work you may need doing.
