We know small business.
December 21st 2023

How to save money and the environment at the same time

By Ryan Allan

The Scholes team is proud to be involved in the renewable energy sector and we always welcome innovation when it comes to green energy.

We often suggest to our clients that they consider their business operations’ environmental impact, not just from an ethical point of view but a financial one.

Few, however, realise that having a nurturing attitude towards the environment can directly benefit their business's bottom line.

In this article, I want to show you how saving the planet could simultaneously save you and your business money.

First, a look at what ‘green taxation’ means

In the UK we have several laws and regulations that govern what a company can and cannot do from an environmental perspective.

In addition, we also have environmentally focused taxes, the profits of which are used to further the goals of protecting nature and reducing our national impact on the planet.

In short, environmental taxes are designed to encourage your business to operate in a more environmentally friendly way and create negative repercussions for those who put the planet at more risk.

These include the Climate Change Levy, the Landfill Tax and the Aggregates Levy.

By complying with these taxes, however, you can reduce your overall tax liabilities through reliefs – meaning a healthier bottom line.

Environmental reliefs for your business

Investing in energy-efficient technology for your business, like solar panels and wind turbines could make it eligible for enhanced capital allowances.

This is a relief that offers a 100 per cent cost deduction from your profits before tax.

They are available for companies investing in new and unused:

  • Electric cars and cars with zero CO2 emissions
  • Zero-emission goods vehicles
  • Plant and machinery for gas refuelling stations
  • Equipment for electric vehicle charging points
  • Gas, biogas and hydrogen refuelling equipment

For the Climate Change Levy, reliefs are available for businesses that use large amounts of energy due to the nature of their operations, or small businesses with low energy usage.

As you can see, the Government is actively supporting your investment in greener alternatives for your business, and you should absolutely be taking advantage of this opportunity.

Can being environmentally responsible really save you money?

In my experience, many business owners feel that efforts to help the environment will only cost them money, rather than help them to save any.

But we have helped numerous companies reduce their tax liabilities through environmental relief schemes – and your business may be eligible too.

Through green taxation reliefs and some shrewd investments in environmentally friendly technology, you could significantly improve your financial outlook in 2024.

Please feel free to get in touch with one of the Scholes CA team if you are considering applying for environmental relief.


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