Latest News

Tax efficient reasons to Go Green

At HMRC we are taking positive steps not only to reduce our impact on the environment but we are also keen to supports our customer’s abilities to reduce their carbon emissions by promoting government measures available to them.

Did you know that as part of the government’s programme to manage climate change, Enhanced Capital Allowances (ECA) are available to encourage businesses to invest in certain types of equipment? ECA are 100% first year allowances enabling a business to relieve the entire cost of the asset against profits in the year acquisition, so providing a cash-flow advantage over other capital allowances.

ECA are available on:

• Certain energy saving equipment
• Certain environmentally beneficial (water efficient) equipment
• Cars with carbon dioxide emissions not exceeding 110g/km driven
• Natural gas, biogas and hydrogen gas refuelling equipment.

For more information on ECA schemes for energy saving and water efficiency equipment go to www.eca.gove.uk/

This website covers equipment that qualifies for the allowance and provides background information about the scheme and its benefits. It also provides the performance criteria how to claim an ECA.

If your business leases or purchases new low carbon emission cars you will find more information at www.hmrc.gov. uk/manuals/camanual/CA23153.htm

(The capital allowances rules for expenditure on cars  with emissions above the 110g/km threshold were changed by Finance Act 2009.  The replacement rules also have an environmental focus and details may be found at www.hmrc.gov.uk/budget2009/bn65.pdf

The CA manual will be updated to reflect there changes in the autumn)

For more information on gas refuelling equipment go to www.hmrc.gov.uk/manuals/camanual/CA23155.htm

Various measure are available to encourage environmentally friendly transport for staff between home and work.  The measures include exemptions from tax for works’ bus services and subsidies paid to public bus services and subsidies paid to public bus services www.hmrc.gov.uk/manuals/eimanuals/EIM21850.htm as well as the provision of bicycles and cycling equipment www.hmrc.gov. uk/manuals /eimanual/EIM21664.htm

Changing the way in which we carry out our business does not always have to cost money and in many instances can lead to significant savings, for example:

• Switching off appliances rather than leaving them on standby
• Recycling wherever possible
• Reducing waste and water consumption
• Avoiding unnecessary business travel by using alternatives such as video and telephone conferencing.

HMRC is committed to respecting the environment and we would encourage our customers to do the same.

You can find our more about Go Green at www.hmrc.gov.uk/about/corporate-responsibility/environment.htm