Packaging machinery is a worthy investment for any business for a variety of reasons. Not only do they offer cost-effective and strain-free solutions but they can make your packaging operations a lot faster too.
If you have been debating on whether packaging machinery would be beneficial for your business, now would be the perfect time to invest. Did you know that from 1st April 2021 until 31st March 2023, companies investing in new plant and machinery assets will be able to claim a 130% super-deduction capital allowance on the plant and machinery investments, as well as a 50% first-year allowance for qualifying special rate assets?
If this is not an indicator on why there is no better time than the present to invest in packaging machinery, then we don’t know what is! This super-deduction allows companies to cut their tax bill up to 25p for every £1 they invest. In this article, we will be discussing the new government relief in more detail and outlining the other reasons why packaging machinery can be used to benefit your packaging operations.
The Government Relief
So, let’s get straight to it. As discussed above, these super-deductions allow your business to cut its tax bill up to 25p for every pound you invest in new equipment, including a 50% first-year allowance for special rate that includes long life. Not only this, but the Annual Investment Allowance will provide 100% relief for plant and machinery investments up to the highest ever £1 million threshold, until 31st December 2021.
Only companies will qualify for the new relief and it excludes expenditures incurred on contracts entered prior to the budget day on 3rd March 2021. It will not include used and second-hand assets and expenditures on contracts entered before 3rd March. Assets used wholly within a ring fence trade will also be excluded from the super-deduction, as they already have a 100% allowance. Plant and Machinery expenditure which is incurred under a Hire purchase or similar contract must meet additional conditions to qualify for the super-deduction and special rate relief.
So, why is the government introducing this super-deduction? Since the pandemic began, existing low levels of business investment has fallen with a reduction of 11.6% between 2019 and 2020. Making these capital allowances more generous helps to stimulate business investment and so these measures can promote economic growth and counter business cycles.
What packaging machinery does the government relief apply to?
The super-deduction will include packaging machinery such as pallet wrap machines, strapping machines, and taping machines. Some of the machines we have at Swiftpak are:
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- Pallet Wrap Machines: We stock various automatic, programmable and cost-effective pallet wrap machines for increased productivity and consistent wraps for pallet loads. They help to reduce strain from manual wrapping, save wasted film from excess or insufficient wrapping and reduce wrapping time while improving load stability.
- Strapping Machine: This machine is built for simplicity of use, it is reliable and has great value. It is easy to load with an exposed coil holder and will feed at just the touch of a button.
- Taping Machine: Includes top and bottom drive belts or both, this machine is easily adjustable to take different sized cartons. It is compatible for tape widths up to 72cm and suitable for heavy products.
If interested in investing in one of our machines, please contact us today to find out more.
The additional benefits of packaging machinery
Other than the government relief, there are many other benefits to packaging machinery. Many companies are now finding ways to be greener and more sustainable to reduce costs and most importantly, eliminate wastage. One of the best ways to achieve this is by investing in packaging machinery. The additional benefits include:
- Increased productivity: Packaging machinery will process goods much faster than if you tried to work by hand. By investing in packaging machinery, you could be saving yourself a lot of time, ensuring a faster production line.
- Healthier workers: If the items that you are packaging are heavy, there can be a risk for health and safety when trying to pack manually. This could lead to costly time off work combined with costly rigorous health and safety compliance. Automated packaging machines will take away this problematic issue and create a safer working environment.
- Improved quality: By investing in packaging machinery, you can be sure that every package is well-protected. Packaging machinery will make sure products are packed exactly as they should be.
- Reduced packaging waste: A packaging machine will only use an exact set amount of material, cutting to size and creating an efficient pattern that maximises the protection out of a minimum level of material. This can save businesses on a considerable amount in packaging costs by reducing the amount of waste created.
- Efficiency: Packaging machinery covers the role that is too repetitive and straining for staff and tasks that are too difficult for a person to do by hand. Rather than struggling trying to employ staff or worker retention, why not have a reliable packaging machine that can take on the work instead?
Packaging machinery can be a very worthy investment for any business that is trying to pack huge volumes of products or has a lack of staff that are able to carry out the tasks that can be pretty straining on the body.
Packaging Machinery from Swiftpak
Do you think packaging machinery could be a worthy investment for your business? There couldn’t be a more perfect time to invest thanks to the new government relief. To see our full range of cost-effective packaging machinery, visit our website today.
Alternatively, to find out more about the government relief or about the packaging machines we offer, contact our packaging experts today and they will be happy to assist.