Investing in energy-saving equipment does more than just save your business money. With the Enhanced Capital Allowance Scheme it can also be more tax efficient. What’s more, Westway can help take you through the process.

Enhanced Capital Allowances (ECAs) are a straightforward way for businesses to improve their cash flow through accelerated tax relief. The ECA scheme is designed to encourage businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL), which is managed by the Carbon Trust on behalf of Government.

The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure. The ETL specifies the ‘energy-saving technologies’ that are included in the ECA scheme.

The scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives.

How the ECA Scheme works

If your business pays corporation tax at 28%, every £1,000 spent on qualifying equipment would reduce your 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* would reduce your business' tax bill in the year of purchase by £56. In other words, an ECA can provide a cash flow boost of £224 for every £1,000 it spends in the year of purchase**.

We’ll take you through the whole process

Finding out more about the Enhance Capital Allowance Scheme couldn’t be simpler. Just call Westway and we have trained staff on hand, ready to take you through the whole process. Making it the easiest way you’ve ever been able to save your business money.

Call us on 020 8833 7263 to find out how ECA can work for you