After a difficult year where UK food manufacturing and fresh produce businesses coped with rapid changes in demand and a lack of seasonal workers, the outlook for 2021/22 is looking brighter.
Having learnt valuable lessons over the past 12 months, many companies are keener than ever to embrace the efficiencies of automated or semi-automated production and packing, and to benefit with the cost savings and increased profit that result from them.
Now the choice on when to invest has been made even easier by the announcement earlier this month by the Chancellor, Rishi Sunak on a scheme to encourage investment by companies.
Super Deduction Tax Relief, with tax relief of 130% on qualifying spend will enable companies to receive 25p of relief for every £1 of eligible expenditure. Investment must be in new qualifying plant and machinery and be made in the next two years. There is no upper limit on the level of investment qualifying for this relief and it is only available to companies. Where an asset is subsequently sold there is a potential clawback of the super deduction to prevent abuse. A 50% first year allowance will also be available for qualifying special rate assets (including long life assets). HM Treasury have produced a Super Deduction fact sheet here.
What that means in reality is that businesses can upgrade their facility with MARCO’s industry-leading hardware and software solutions and take advantage of a net 25% discount for orders this year and next. With MARCO lines proving to improve productivity by 30% and with the benefits of the system delivering these results from day one of operation, the Super Deduction Tax Relief Scheme will further reduce the Return on Investment (ROI) timescale, which for many companies is already measured in weeks and days, rather than months and years.
If you’d like to discuss what this could look like for your business please contact our UK Sales Engineers: Jon Heard (Midlands & North England, Scotland and Ireland) or Andy Connor (Southern England).