Don't miss out the Super Tax Deduction

Article posted

16th Feb 2023

Read time

3-5 min read


Mollie Pinnington

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There are two huge tax cuts that are coming to an end next month in the UK, that your business needs to take advantage of whilst the opportunity is still there.

In 2021, then Chancellor Rishi Sunak announced two tax cuts – this was the 130% super deduction and the 50% first-year allowance. To claim these cuts businesses must invest in qualifying machinery or sustainable innovation by 31st March 2023.

Solar panels are energy-efficient equipment that will qualify for this.

By investing in solar you will only pay corporation tax on your operating profits with a discount of 50% of your solar investment.

The Tax deduction was originally to increase the UK’s economic output after covid hit as well as a push on net zero strategies to drag non-domestic consumers away from fossil fuel dependency.

  The tax break technically means that for every £1 your company invests in solar energy, you could reduce the tax bill by up to 25p. With the 130% supercut.

The second part of the package is a 50% first-year allowance. If your company invests in solar you save on your tax bill at the end of the year.


Is your business eligible? 

Luckily these tax breaks are available to all businesses whether you are a small or large business, if you have a business property that you are legally allowed to place solar infrastructure on then you can take advantage of this scheme.

Before looking into incentives, you can have on solar investment, make sure you have the planning permissions to do this on your location first. Planning permissions being denied could lead you to miss out on government support. Make sure you begin the process as soon as you can.


Now is the best time to invest

As we are coming towards the cut-off point to be eligible for this incentive now is the best time for your business to invest in solar power.

Not only will your business benefit from the tax cuts but solar is one of the best energy-efficient infrastructures your business can invest in.

Not only will you make the most out of your investment by starting it the process in a timely manner, but you will also reduce your consumption leading to savings on your energy bills for years to come.

Upgrading your business with solar panels will reduce your energy consumption by up to 60% and you will see a return on investment in under 4 years.

Going solar will lead to a greener future for your business.


How Resolve Net Zero can help you

At Resolve Net Zero we can take care of the whole solar process for you. We will make sure the process is as cost-effective as possible to maximise your ROI. As well as this we will also take care of everything leaving you to run your business.  

If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.