Introduction
Rising energy costs, increased environmental awareness and whole life project costing are making energy efficiency measures important to every business, to Mace and to our clients.
Enhanced Capital Allowances, ECAs, for energy saving technologies help our clients to benefit from:
1. Competitive advantages achieved by installing and operating cost effective, environmentally friendly solutions
2. Raising the client’s green credentials and demonstrating their awareness of the latest technologies
3. Minimising their environmental impact whilst reducing acquisition and operating costs
4. Reducing their whole lifetime costs.
Clients who have not considered applying for an ECA are missing out on opportunity to use enhanced tax relief for investments made in energy-saving equipment.
Mace is playing its part in the ‘increasing moral duty of the construction industry supply chain to reduce the environmental impact of buildings’.
The company is actively advising its clients on the most cost effective ways to achieve those vital goals.
Energy efficiency is now a key focus in the new building regulations, in particular Part L revised in 2006, which introduced Energy Performance Certificates, Display Energy Certificates and CO2 emissions calculations.
This legislation is driving clients to seek more energy efficient solutions for their buildings.
Mace encourages its clients to think of investing in new air-conditioning, other plant and machinery which offer energy saving alternatives.
All of the air-conditioning equipment and systems specified and installed by Mace meet the ECA criteria under the specified technologies.
What Is ECA?
The Enhanced Capital Allowance, ECA, scheme is a key part of the Government's programme to manage climate change.
It provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria.
ECAs allow the cost of an investment to be written off against the taxable profits of the period in which the investment is made. This can boost cash flow along with the comfort that the purchase will also deliver reduced energy bills.
There are no catches or drawbacks to the scheme and it really should be seen as an incentive.
The vast majority of market leading brands appear on the ETL giving Mace clients the peace of mind that manufacturer is both familiar and reputable.
For more information, check out the ECA website http://www.eca.gov.uk/etl/
How to claim an ECA
ECA claims should be submitted as part of your normal corporate or income tax return.
It's important to retain all documents relating to your ECA claim, including invoices, dated screen prints from the ECA website and anything from the company that installs the equipment.
HMRC may investigate any aspect of a tax return and you should have all necessary evidence to hand to support your claim.
Claiming for listed products
For products on the Energy Technology Product List, you can claim on the cost of the equipment itself, and other costs directly involved in installing it.
These include:
• Direct Transportation — the cost of getting equipment to the site.
• Direct Installation — cranage (to lift heavy equipment into place), project management costs and labour, plus any necessary modifications to the site or existing equipment.
• Professional Fees — if they are directly related to the acquisition and installation of the equipment.
However, any remote or indirect costs do not qualify for the ECA. For example, staff time spent taken to select the right equipment. Remember, only new equipment is eligible for an ECA. (Used or second-hand equipment does not qualify).
If the product you purchase forms part of a larger piece of equipment, you should refer to the published claim values published on the ECA site (using the above mentioned link) to find out what proportion of the total cost qualifies for the ECA.
