Labour shortages and 130% super deduction tax

In simple terms, reasons for automating low skill jobs such as feeding trays or cards onto a production line have been made even more compelling due to the current labour shortage.

In addition, the government have introduced the 130% “super deduction” allowance which will enable firms to cut their taxes by up to 25% for every pound they spend

Many businesses are unable to fill vancancies for low skilled positions and are being driven towards automation of simple tasks. We can help deliver quick wins!

For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.

An example of the super deduction in practise:

A company incurring £100,000 of qualifying expenditure could claim the super-deduction, and therefore subtract £130,000 (130% of the initial investment) from its taxable profits. As corporation tax is currently at 19%, the company will make a saving of £24,700 on its tax bill.

As many of our soutions cost much less than £100,000, return on investment is often months, if not weeks in some instances.

Give us a call to see see what solutions we have to offer