Most small and medium business owners I speak to are clear that they want to improve sustainability and reduce their carbon footprint. The problem is not the will, but the logistics and frankly the financial realities of making it happen. However, we always believe that where there is a will, there is a way. We also believe that making a start is better than hesitating until you can do things perfectly.
This blog is simply a place to gather together some information that businesses, like yours, might not have been aware of before. Though our government has disappointedly, rowed back on some of its green commitments, there are still tax reliefs available and loans that are specifically available to improve energy efficiency. So, let’s take a look at what’s out there.
Tax reliefs
Low-emission cars
We’ve covered low-emission cars before, and if your business is affected by the expanding ULEZ boundaries, it might be the thing for you.
For the 2023/24 and 2024/25 tax years, fully electric cars attract a mere 2% BiK rate. Plus, you might be eligible for grants to cover the costs of installing charging infrastructure at your workplace or even your home. Talk about a smooth ride!
The green tech game
Finding new ways to use green tech in your company? Research & Development (R&D) tax credits are not to be missed.
Whether you’re developing sustainable packaging, pioneering waste management solutions, or making your processes more energy-efficient, R&D tax credits can provide relief of up to 186% on your qualifying costs.
Property perks
If you’re a business property owner, consider making energy-efficient upgrades. The Land Remediation Relief provides 150% corporation tax relief for cleaning up ‘brownfield’ sites to bring them back into use.
Loans
Many banks are now offering loans specifically designed for businesses to cover a range of sustainable projects and activities. Two such initiatives are:
Green SME Fund from HSBC
This fund offers loans from £10K to £25k providing the loan is used to finance a range of green activities and to make your business more sustainable.
https://www.business.hsbc.uk/en-gb/solutions/green-sme-fund
Lloyds Clean Growth Financing Initiative
Lloyd’s Clean Growth Financing Initiative offers discounted lending for green purposes. https://www.lloydsbank.com/business/commercial-banking/clean-growth-financing-initiative.html
Other banks offering similar loans include NatWest and Royal Bank of Scotland. Contact your bank to find out what they offer.
Steps to get started on the path to sustainability
Do your homework: Research which reliefs and loans best apply to your needs.
Document everything: Keep meticulous records of your investments and expenditures. Trust us; you’ll thank yourself come tax season.
Consult the pros (that’s us): Always seek advice from a tax specialist to ensure you’re making the most out of these opportunities.
Wrap-up
There are tax reliefs waiting for you to explore. With the UK edging slowly towards a greener economy, it’s time to embrace sustainability like never before.
Remember, it’s not just about a one-off change; it’s a business lifestyle.
Get in touch with us today to talk about your sustainability goals and how we can help.
