Can you really get money back on Air Conditioning Installations? YES!
The Enhanced Capital Allowance (ECA) scheme means that businesses can invest in plant and machinery that might otherwise be too expensive as they receive money back for every purchase! However, today I would like to mainly talk about Air Conditioning.
There is of course strict criteria to follow, and not all plant and machinery is on the list as it only applies to plant and machinery with the very best efficiency ratings, but you can get some great savings and money back! It gets even better too, as you can claim all associated costs within this.
The first year allowances let businesses set 100% of the cost of the assets against taxable profits in a single tax year. This means the company can write off the cost of the new plant or machinery against the business’s taxable profits in the financial year the purchase was made. It works out at roughly 20% of the cost that you can claim back against your company tax allowance.
ECA is claimed through a business’s income or corporation tax return in the same way as any other capital allowance. HM Revenue and Customs is responsible for the tax-related aspects of the ECA scheme. For more information please follow this link: https://www.gov.uk/guidance/energy-technology-list#enhanced-capital-allowance-eca-scheme
The main areas we see this are commercial refrigeration & air conditioning and we have many clients who make the most of this scheme on a yearly basis. For an example we installed £46,000 of ECA Rated Mitsubishi Electric VRF Air Conditioning Equipment into offices, the customer was able to reduce their tax bill by approx £9,200. As well as money back, they also have a very efficient system that will cost very little to run compared to the old system.
I did a blog a few months back called 'Save money by heating with Air Conditioning' and that's here: http://www.carltonservices.co.uk/blog/air-conditioning/air-conditioning-system-heating/ The only reason I mention this is that the combined benefit of getting money back from an air conditioning installation and cheaper running costs than a central heating system means that air conditioning really can be a very cost effective solution all year round.
Mitsubishi Electric have produced a list of qualifying equipment, and this was correct as of 24th April 2017 but could change at any point, so please make sure you are looking at the most up to date list before you buy! http://library.mitsubishielectric.co.uk/pdf/book/ECA_certificate_of_compliance_January_2016#page-1
The ECA Scheme is brilliant as it can be used for any qualifying equipment and all associated costs. There is a wide range of products currently included, to check if your product is on the list, please follow this link: https://etl.beis.gov.uk/engetl/fox/live/ETL_PUBLIC_PRODUCT_SEARCH
At Carlton Sales you will find many products that are on the ECA list, and a special section has been created with new products being added all the time, to see these products please follow this link: https://www.carltonsales.co.uk/eco-products.html
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