Interesting News

Press releases

HWB advise to go green for savings

Businesses looking to invest in boiler systems, air conditioning, lighting, refrigeration or any other energy-intensive capital items should think twice before they sign on the dotted line.

That is the verdict of Geoff Rhodes who says: “Companies are missing out on interest-free loans, tax incentives, improved cash flow and reduced energy bills not to mention environmental benefits – all because they are unaware of the advantages of energy-efficient investment.”

He explains the government has backed an organisation, The Carbon Trust, to work with UK businesses and the public sector to drive the move to energy efficiency in the workplace.

The Trust holds an ‘Energy Technology List’ (ETL) of products which are recognised as meeting the government’s carbon criteria.

“Admittedly these products can carry premium prices,” explains Geoff, “but when you offset these against all the financial and environmental benefits they can often prove more attractive propositions.”

“For example, small and medium-sized businesses can secure interest-free loans of up to £100,000 from the Carbon Trust for the purchase of this kind of product.”

This equipment also benefits from Enhanced Capital Allowances (ECAs) – accelerated tax relief. The scheme allows businesses to write off 100% of the cost of the purchase of ETL equipment in the first year.

“This means that if a business pays Corporation Tax at 28%, every £1000 spent would reduce its tax bill by £280 in the first year. Add to that the interest savings on a loan, the savings on energy bills, not to mention lower Climate Change Levy payments – then energy efficient options can stack up and the calculations should certainly be made whenever purchase of these products is on a company’s agenda.”

HWB can offer advice and undertake the calculations. For further information contact Geoff Rhodes on 023 8046 1200.