Slash Your Tax Bill & Save the Planet? County Durham Businesses Are Cashing In on These Green Incentives

With sustainability no longer just a buzzword but a business imperative, companies across County Durham are discovering a surprising bonus: going green can save you serious money. Today's blog explores how you can do the same!

TAX TIPSGREEN INITIATIVESDURHAM BUSINESSES

The Tax Faculty

5/1/20252 min read

unknown person holding clear glass ball
unknown person holding clear glass ball

Green Incentives You Should Know About

The UK government has introduced a range of tax incentives, reliefs, and grants aimed at encouraging environmentally responsible practices — and local businesses are already reaping the rewards. If you’re not tapping into these opportunities, you could be leaving money on the table.

Let's take a look at what's on offer...

1. Capital Allowances for Energy-Efficient Equipment

The Enhanced Capital Allowances (ECA) scheme lets businesses claim 100% of the cost of qualifying energy-saving equipment against taxable profits in the first year. Think:

  • LED lighting systems 💡

  • High-efficiency boilers 🔥

  • Low-emission vehicles 🚗

A quick upgrade could mean instant tax savings.

2. Electric Vehicles & Charging Points

Investing in electric company cars or installing EV charging points? You could:

  • Claim a 100% first-year allowance

  • Avoid company car tax surcharges

  • Benefit from grants and VAT exemptions

This is one of the fastest-growing incentives — and one of the easiest wins for SMEs.

solar panels on green field

3. R&D Tax Relief for Sustainable Innovation

Developing greener products or improving your supply chain’s carbon footprint? You might qualify for R&D tax credits, even if you're not in a traditional “tech” sector.

Many Durham firms overlook this, but innovation in environmental impact counts too.

4. Government Grants & Local Support

County Durham offers access to regional sustainability grants that cover part of the cost of eco-upgrades, energy audits, or retrofitting older buildings.

Partnering with local councils or LEPs (Local Enterprise Partnerships) can unlock funding and expert support.

Is it Worth it?

Yes — and it’s not just about savings. Businesses that go green:

Win more contracts (especially from public sector bodies)

  • Appeal to eco-conscious consumers 🌍

  • Reduce long-term operational costs

  • Future-proof themselves against tightening regulations

How Seeking Professional Advice Could Help

Navigating these incentives can feel like a minefield — but that’s where we come in. Our team works closely with businesses across Durham to identify which schemes apply, ensure all claims are HMRC-compliant, and connect you with the right professionals.

Whether you're looking to install solar panels, switch your fleet to EVs, or claim R&D tax relief, we’ve got the expertise and network to guide you every step of the way.

🌤 Don’t Wait — Make Hay While the Sun Shines

The incentives are here now, but they won’t last forever. With government focus shifting regularly, acting today could be the smartest (and greenest) financial decision you make.

📞 Ready to get started? Let’s talk — and make going green your business’s most profitable move yet.