When running a small business, every penny counts. Not just ensuring that you have a consistent cash flow and are maximising your profits, but also by making sure that you're not spending money unnecessarily and make savings where you can.
Depending on whether you run your small business from home or require physical premises, your overheads will be different.
Energy is one of the biggest costs of running a small business, whether from home, an office, or a shop. With the current rises in the price of gas and electricity, it's more important than ever for business owners to cut energy costs and make savings where possible.
This post will look at some of the different ways you can save money on your energy bills when running a small business.
With this in mind, it's important to get advice specific to your business and where you are located. Some schemes may only be open for a limited time or they may not be available in your local area. It is also worth checking if there are other specific schemes available for your sector or for where you are based.
Know what financial support you're entitled to
If you run a small business in the UK, you're often entitled to some financial support to help with the running costs. This can come in the form of business grants and government-backed support schemes for small businesses, and you can even claim back some of your costs when submitting your tax return.
Depending on whether your business operates a limited company or you're a sole trader, there will be some differences in what you can claim back and the types of things you're entitled to.
However, since you won't find the government tripping over themselves to make you aware of any financial support schemes or tax breaks, it will be on you to do your research and find out what you're eligible for.
If you have an accountant, they will know about the different things available to help business owners, so if they haven't mentioned this to you already, then they're the best person to start with.
Here are just a few of the things that may be available to your small business to help save money on energy costs:
The Energy Bills Discount Scheme (EBDS)
This is a government scheme for businesses in the UK and Northern Ireland to help with the rising energy costs. You can learn more about the EBDS scheme on the GOV.UK website, including the eligibility requirements.
Tax relief
Depending on the nature of your small business and the types of costs you incur, you may be able to claim back some of the costs when submitting your tax return. There are various things you can claim for and some you can't, so it's important to ensure you're eligible before making a claim. The British Business Bank has published some helpful information on how tax relief works.
Be mindful of your energy usage
Just as you do at home, being mindful of how much energy your small business uses is a good way to reduce costs and save money on your bills.
Of course, if you employ staff or use many electric or gas-powered appliances, your energy costs will be higher, but there are still plenty of ways to cut back and reduce your bills, some of which we've listed below:
- Switch to energy-efficient lighting
- Track your usage to monitor times and appliances that are costing more
- Have a switch-off policy for computers at the end of the day
While these are just some of the ways you can cut back on your energy consumption and lower your bills, you might find that these have very little impact if you're on a high tariff.
Look for a better energy deal
Following on from the previous point, if you've been on your current energy tariff for a while, you could be paying more for your energy than you need to.
Business energy tariffs are slightly more complex than residential ones, and the meter type and tariffs you'll be offered will also depend on things like whether your small business operates from your home or you rent commercial premises. Using an energy-switch service dedicated to businesses is one of the best ways to find the best deal.
We hope this post has helped you understand more about how you can cut your energy consumption and costs as a small business owner so that you can benefit from lower bills and enjoy more profits coming into your business to help you grow.
Copyright 2023. Sponsored post made possible by Power to Switch.