WITH the Chancellor’s Budget just around the corner, eight leading trade associations, including the BVRLA and the FLA, have written to the Chancellor recommending that a new Green Super-Deduction replaces the existing programme when it comes to an end in March.
The associations believe that SMEs looking at their investment needs right now will undoubtedly be considering Net Zero implications.
While smaller firms are not required to report on their transition to greener technology, it’s an increasingly important factor for their end customers, whether consumers or businesses, and therefore keenly linked to competition.
A major flaw of the current Super-Deduction is that it is not available for leasing or short-term hire, continues the associations’ argument, despite the fact that many firms choose these options because it makes good business sense.
In the current economic conditions, firms may want to maintain a little flexibility with their cash flow, or depending which sector they operate in, they won’t want to buy an asset outright if they only need it for a few months at a time, or if they operate in a high-tech industry where obsolescence is a factor.
The recommendation put to the Chancellor is for a Green Super-Deduction to replace existing allowances for green plant and machinery, such as the 100% first year allowance (FYA) for electric vehicle charging points and electric vans, and the 50% FYA for plant and machinery which supports a business’s energy efficiency.
It goes on to say that this would deliver simplicity for businesses, especially SMEs, which may otherwise not use capital allowances.
The signatories to the letter are: BVRLA, CECA, EAMA, FLA, Forum of Private Business, Logistics UK, Make UK and MTA.
More About The Green Super Deduction For SMEs
learnd is a business that supplies building management systems to help customers save energy and reduce carbon emissions. To increase its own decarbonisation goals, the company has introduced a salary sacrifice scheme for learnd employees provided by Edinburgh fleet management provider Gofor
LEASING provider Leasys UK has teamed up with Octopus Energy’s Electroverse to give drivers access to more than 620,000 public electric vehicle (EV) chargers across the UK and Europe.
Leasing firm Octopus Electric Vehicles has agreed a deal with US EV manufacturer Fisker to be one of the first lease providers in the UK to offer a new all-electric Fisker Ocean SUV