Tax relief in the form of Enhanced Capital Allowances

In challenging economic times it is tempting to make quick savings by cutting staff and infrastructure. This not always brings the desired savings considering the added “costs” of redundancy settlement and required reinvestment when business improves.

In contrast, a relatively small investment in Variable Speed Drives (VSDs) to improve the motor efficiency provides a real payback in substantial and sustained savings in periods of both recession and growth. This information comes form GAMBICA, the Trade Association for Instrumentation, Control, Automation and Laboratory in the UK.

Variable Speed Compressors employ a special drive which controls the RPM (Revolutions Per Minute) speed of the compressor, and this in turn saves energy when compared to its fixed speed equivalent.

The energy efficiency of these compressors results in worthwhile savings on energy costs for users with fluctuating compressed air requirements. The demands for air in nearly every compressed air system fluctuates to some extent. If a compressor has a fixed speed, then it means that it will be switching on and off and probably running inefficiently.

The incentive

Variable Speed Drives qualify for tax relief in the form of Enhanced Capital Allowances (ECA). This means that the full capital costs of equipment and its installation can be offset against income tax in year one.

The use of VSDs is therefore one of the most easily implemented and cost effective ways to achieve carbon reduction to meet the obligations under Carbon Reduction Commitment.
Contact us on 0800 526581 to discuss in more details.