Is Now The Time To Invest In Waste Machinery?
Since the Covid-19 pandemic, existing low levels of business investment have fallen, with a reduction of 11.6% between Q3 2019 and Q3 2020. Much of the UK’s productivity gap with competitors is attributable to our historically low levels of business investment compared to our peers (Gov, 2021).
In an announcement earlier this month, Chancellor, Rishi Sunak launched a new super deduction tax policy. From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
- a 130% super-deduction capital allowance on qualifying plant and machinery investments
- a 50% first-year allowance for qualifying special rate assets
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. The super-deduction will also give companies a strong incentive to make additional investments and to bring planned investments forward.
As a result, these measures can promote economic growth and counter business cycles. The OBR has estimated that it will boost business investment by 10%; around £20 billion more per annum.
When will the super deduction tax policy end?
The relief will end before the higher rate of corporation tax comes in in March 2023.
Is now the right time to invest in machinery?
Read our overview of waste management products and services to see how your business can best benefit from investing in waste machinery.
Business waste – while it’s an ever-present item and an ongoing byproduct of business processes – it’s never the first thing on people’s minds. This means that waste management processes are, more often than you’d think, not up to standard.
This means that there can be very real risks to your safety, productivity and compliance. Issues with waste management can lie under the surface of your concerns ready to strike at the most inopportune moment.
Ensuring you’re improving your waste management strategy helps to prevent these risks, while also potentially increasing the cost-efficiency of your business by reducing the overheads associated with waste disposal.
With the super deduction now in place, it’s time to re-evaluate your strategy and ensure it’s properly suited to your business needs.
In our guide, we cover everything from best practices and waste audits to what you should be looking for when choosing waste machinery. Get started today and download our guide below.