“Full expensing” – What does it mean for your automated storage plans?
In the Spring Budget (15/03/’23), Chancellor Jeremy Hunt announced a measure allowing companies to write off costs of qualifying machinery and IT equipment against tax on profits.
Dubbed, “full expensing”, the new tax-break will allow companies to claim up to 100% of the cost of their investment. The policy takes its inspiration from the now defuncted ‘Super Deduction’, but learning from the super deduction’s lessons, the new policy will allow businesses to claim the relief much more quickly.
Ross Powell, Industore’s Managing Director:
“We are pleased to see the Chancellor is continuing with tax-incentives for business investment with this latest, capital allowance scheme. The late, ‘Super Deduction’, from which this scheme has taken its inspiration, benefitted Industore clients up and down the country – and the fact that the new scheme will allow businesses to realise the benefits more quickly is only a good thing.”
Why choose industore?
For a quarter of a century, Industore has been spearheading the design of automated storage and retrievals systems (AS/RS) across the UK and Ireland – maximising space utilisation, employing architectural logic and installing the world’s leading automated vertical storage systems.
Among dozens of other benefits, AS/RS ensure businesses safeguard their inventory, and have 100% stock transparency. Faster, more efficient, and safer than ever before.
There is no doubt that the new scheme is a fantastic opportunity for businesses who were on the precipice of investing in Automated Storage and Retrieval Systems, hopefully pushing those in charge to ‘press the button’, invest in their businesses and unlock their full potential at the best possible price. It is also incumbent on those companies who earmarked AS/RS as part of their longer-term strategy to accelerate their plans, ensuring they can capitalise on this tax-break – which is time-sensitive. The new full-expensing investment incentive will give firms confidence to invest, and in turn, leapfrog their businesses forward in what is an ever, globalised, competitive world.
Ross Powell continues:
“Industore’s exclusive partnership with industry leader, Hänel GMBH empowers organisations to employ first-class, high-tech vertical storage and retrievals systems to maximise space utilisation, improve picking time and accuracy. In turn, this will develop a much more efficient workflow. I can think of no better way, nor a better time for people to invest in automated storage and retrieval, and I look forward with a renewed optimism that the years ahead will be incredibly prosperous for those with the courage and foresight to invest now, and reap the rewards of that investment to the future.”
Just as the typewriter gave way to the keyboard and the smartphone, more and more, businesses are turning to automated storage and retrieval systems (AS/RS) in place of traditional warehousing – with racking and pickers. AS/RS is safer, more efficient, faster and gives total stock transparency and security, and integrates to the best possible smart technology. With space in the UK at a premium, businesses are, some for the first time, exploiting the headroom of their current facilities to increase their storage capacity, as well as avoid expensive and disruptive plans to relocate to larger sites.
Ambitious, tenacious businesses throughout the country will now accelerate plans and double-down on their investments to safeguard their futures. Those who don’t will get left behind.
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