BT-HS | “Investment can reap more benefits than ever for highways sector businesses…”
In light of the recent announcement from the government via the budget, a new form of relief will come into effect from next month that will enable businesses to be rewarded for making further investment into their companies.
Tom Brown, Director at PMD Business Finance explains:
“The budget announcement encourages companies to invest in new plant and machinery by way of a 130% first-year
capital allowance. Under this ‘Super Deduction’, businesses can reduce their tax bills by 130% of the cost of any capital investments.
“For every £100,000 invested, £130,000 can be offset against taxable profits, which at current tax rates saves £24,700 on every £100,000 spent. This is uncapped and will run for two years.
“Many operators are also unaware that Asset Finance facilities can be secured through Coronavirus Business Interruption Loan Scheme (CBILS), which can offer flexible payment terms with the government paying all interest and fees in your first year. The scheme is due to close on March 31st for application, but funds can be drawn down up to six months after approval.
“The new Super Deduction allowance, coupled with CBILS benefits, could mean that now is the perfect time to start
planning your investment strategy.”
BTHS are highlighting the new scheme as a great incentive for companies to invest in new Traffic Management Vehicles.
Phil Glaiser commented:
“We have an ambitious build programme in place for 2021, currently building RED X Impact Protection/Crash Cushions and 3.5t Traffic Management Vehicles that are for sale to customers as well as complementing our existing hire fleet”
“The new government initiative makes the procurement of new vehicles considerably more attractive over the prospect of hiring or leasing them. We work closely with the guys at PMD Business Finance providing options for customers who are looking to purchase or lease vehicles from ourselves.
BT-HS currently have DAF IPV’s and Renault 3.5t vehicles available in their build programme, and whilst there are some murmurs of companies struggling with chassis supply due extensive importation times, BTHS have these chassis on the ground and in build.
“We do have availability in our 2021 schedule on 3.5t and IPV’s. We purchased in advance the DAF 18t and the Renault 3.5t vehicles to ensure that we could keep the pricing low for customers in 2021 and to ensure we had an available supply. But I suspect these will be taken up a lot faster now that this initiative has been announced.”
“It definitely seems to have been set up that investment can now reap more benefits than ever for highways sector businesses.”