As many food manufacturers struggle to fill vacancies there is a drive to increase levels of automation to allow lines to be run with lower staffing levels. At WMH we are seeing a trend towards automation and projects that had previously been put on ice due to due to budget restraints are being resurrected as factories strive to maintain production levels with reduced labour.
According to government figures the level of investment in capital equipment in the UK has for many years been at lower levels than our European counterparts. This was further reduced by a significant drop of almost 12% between 2019 and 2020. To stimulate the economy and encourage investment in new capital equipment the government has introduced generous tax allowances which you may be able to take advantage of to offset the cost of capital equipment purchased between April 2021 and March 2023.
During the qualifying period businesses will be able to claim 130% tax relief on investments in plant and machinery. The scheme also introduces a 50% first-year allowance and an Annual Investment Allowance up to £1m until December 2021. In real terms this means that for every £10,000 spent on equipment businesses can save £2,470 in taxes.
As a manufacturer of capital equipment WMH welcomes this new tax allowance which allows our customers to offset some of the costs incurred in capital equipment and automation projects against their tax liabilities. This will be particularly helpful for some smaller businesses that may have found the cost of automation a barrier in the past.
If you are considering automation, WMH sales engineers will be happy to discuss the options and signpost you to further information about the government scheme.
For more information, please call 01579 383788 or email email@example.com.