A leading automatic packing systems firm is alerting businesses to a tax relief incentive which could save them thousands of pounds.
Pacepacker Services, who are specialists in automation packing, processing and palletising equipment, recently learned of the Annual Investment Allowance (AIA), a Government HMRC initiative which benefits businesses investing in up to half a million pounds in plant and machinery.
The allowance, which is subject to 100% corporate income tax relief on qualifying plant and equipment, runs until the end of 2015.
Having been alerted by their accountants to the incentive, Pacepacker conducted a customer poll to gauge awareness of the allowance.
Asking customers if they were aware of the AIA, 90% of those polled responded ‘NO’, with the majority wanting to know more.
“To be frank, until our accountants put this on our business radar, this tax relief incentive wasn’t something that we were aware of either – like a best kept secret!” said Dennis Allison, Pacepacker’s Managing Director.
The AIA’s initial limit was £25,000 with the allowance increased in stages over the last few years; from 1st April 2014 it was increased by HMRC from £250,000 to £500,000.
Although there is a risk the limit could revert back to its original sum on 1st January 2016, tax pundits say it may be made even higher and could be reviewed by the Chancellor in his autumn statement.
With confidence in UK manufacturing and the wider economy continuing to build, missing out on this tax incentive could be a significant financial oversight. “We are by no means financial experts,” emphasised Dennis. “But for any customer considering investing in plant, we are flagging this incentive and suggesting they speak urgently to their accountant or financial adviser so that they can make an informed investment decision.”