Jet boost to cash flow
The Jet Towel high performance hand dryer from Mitsubishi Electric has been registered for the government’s Enhanced Capital Allowances (ECAs, therefore will improve cash flow through accelerated tax relief.
The ECA Scheme for Energy Saving Technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL), managed by the Carbon Trust on behalf of Government. Only equipment that can prove significant energy advantages is excepted onto the scheme
Unlike conventional hand dryers, Jet Towel uses precision jets to generate a thin laminar flow of air over the wet hands, to blow the water droplets off the finger tips with energy savings of over 70 percent.
Additional environmental gains are made because there is no production, distribution and disposal of paper towels.
“Hand drying can be a major hidden energy cost, even for small organisations,” says Jet Towel Executive Fawn Litchfield. “Jet Towel offers probably the best way to control this, and has many other benefits too. For instance drying time can be as quick as 10 seconds, a quarter that of hot air dryers. It is non-contact and extremely hygienic too with its anti-microbial material.
The ECA scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment.
As an example if a business pays corporation or income tax at 28%, every £1,000 spent on qualifying equipment would reduce its tax bill in the year of purchase by £280. In contrast, for every £1,000 spent, the generally available capital allowance for spending on plant and machinery would reduce your business’s tax bill in the year of purchase by £56. In other words, an ECA can provide a cash flow boost of £224 for every £1,000 it spends.