At Stevens Traceability, we understand what a challenging year it has been for businesses across the country, and after recently speaking to our accountants, we wanted to share some information about tax savings which you may find helpful particularly if you are looking to invest in plant or machinery, or if you’re at the early stages of implementing a new process within your business.

Here is a quick overview of two tax-saving opportunities that you may find beneficial:

Super deduction corporation tax relief, from April 2021

Machinery for Manufacturing

Who is this relevant to?
Companies who invest in plant and machinery on or after 1 April 2021

Description of the HMRC measure
This measure will temporarily introduce increased reliefs for expenditure on plant and machinery. For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:

  • a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
  • a first-year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances

The measure also temporarily amends the rules covering expenditure incurred on plant and machinery used partly in a ring-fence trade in the oil and gas sector.

Find out more here

R & D tax credits for new processes

Manufacturing Process

Who is this relevant to?
Small to Medium-sized enterprises who are looking to invest in new processes.

About Research & Development Tax Credits
SME-defined companies can claim 230% tax relief on qualifying expenditure which can be attributed directly to R&D activities, rather than a standard 100% relief.

Find out more here

If you would like any further information, we will happily put you in touch with our tax expert for a free, no-obligation discussion, simply contact us mentioning ‘Tax Savings Blog’.