Businesses pay tax for energy they could have saved; small business Good advice.

Byline: Elaine Inglis

"NEXT weekend sees the end of British summertime, leaving us in no doubt that winter is just around the corner.

With the change in seasons comes the drop in temperature and the inevitable, almost overnight, rocketing of fuel consumption.

Now, more than ever, it is important to be aware of how and where you use most energy in the workplace. That way, you can formulate a strategic plan for reducing costs.

This might involve changing the habits of your employees but it shouldn't be difficult. They probably already put energy-saving ideas into practice in their home - eg not leaving lights on all night or in an unused room and turning down the thermostat on the boiler a notch.

According to the Carbon Trust, a government-backed organisation that promotes the efficient use of energy, cutting energy costs by 20% can have the same bottom-line benefit as a 5% increase in sales for many businesses. And while the main advantages to efficient energy use are that you'll reduce your overheads and save money and therefore gain a competitive edge over your more wasteful competitors, there are other reasons too.

For example, all businesses that use more than "a domestic level of energy" pay the Climate Change Levy, an additional charge added to energy bills. The fewer units of energy used, the lower the tax paid.

There are also tax incentives available for businesses that buy and use energy and water efficient technologies or low-emission vehicles.

And, as a resource efficient business, you are demonstrating a responsibility towards the environment which is a strong marketing message.

You can read about the Climate Change Levy and the tax incentives available in Business Link's guide on Environmental Tax Obligations and Breaks.

This is available on the Business Link website, as is a list of suggestions on how to save energy in the workplace.

Elaine Inglis is operations manager of Business Link Northumberland."