As the country continues its cautious bounce back after a crippling year for many businesses in 2020, we are seeing even more supporting initiatives from Government forming part of their stimulus package. This is one we’re particularly excited about as this really helps business to Build Back Better. This super deduction tax break is designed as a kick-start to the economy, supporting businesses to invest in much needed equipment at this crucial time. So, let’s take a look at what businesses can claim for.

What are the criteria for claiming the super deduction tax break?

The opportunity to claim for this tax break has been in place from 1 April this year and will run until  31 March 2023. This directly places support with companies investing in new plant machinery. This will enable businesses who buy these assets to claim:

  • a 130% super-deduction capital allowance on qualifying plant and machinery investments
  • a 50% first-year allowance for qualifying special rate assets

Any purchase arrangements already in progress before the 1st April will not be eligible.

What does this tax break mean in real terms for you?

This super-deduction means that for every pound spent on investing in new machinery, you will be able to cut your tax bill by 25p. So this really does represent an incredible saving for individual businesses as well as stimulating growth for the UK as a whole.

What equipment qualifies for the tax break?

The equipment will need to be unused – so not second hand. The list of machinery can be anything from working vehicles to office furniture. This list below shows the kind of equipment that can be claimed for, and is not exhaustive. Click here to see more about eligible equipment for the super deduction tax break fact sheet.

  • Solar panels
  • Computer equipment and servers
  • Tractors, lorries, vans
  • Ladders, drills, cranes
  • Office chairs and desks
  • Electric vehicle charge points
  • Refrigeration units
  • Compressors
  • Foundry equipment

What could these savings look like in practice?

This is an example of a super-deduction saving after spending £1 million on qualifying machinery:

• Spending £1m in this way means the company can deduct £1.3m
(130% of the initial investment) in computing its taxable profits

• Deducting £1.3m from taxable profits will save the company up to 19% of that – or
£247,000 – on its corporation tax bill.

Can I use the super deduction tax break for new packaging machines and equipment?

The answer is YES!

Packaging Machines to consider purchasing with the super deduction tax break

Packaging Machines to consider purchasing with the super deduction tax break

There has never been a better time to think about investing in packaging machinery with this opportunity. If you have been thinking of upgrading to a more automated approach or integrating packaging machinery where you can – now is definitely the time to do it. And now you will be able to afford to do more and make a real impact in your operation’s productivity.

Packaging machinery can bring real benefits to your operation by speeding up processes, making your business more efficient and competitive.  So your shopping list could include equipment that also allows you to consider eco-friendly options with paper tape machines, sustainable cardboard shredders like the Ecopax machines to create your own void fill as well as the range of Papertech machines that supports on demand paper void fill.

But where you’re really going to see increased benefits is with larger investments that can create a step-change in your operation with equipment such as pallet wrap machines. If you’ve been thinking ahead to April next year and the start of the new Plastic Packaging Tax, wondering how you were going to adapt your operation – then this is your big opportunity to meet this head on, still save money and reduce plastic consumption.

Buying a new pallet wrap machine with the super deduction tax break

Buying a new pallet wrap machine can be quite daunting. If you’ve been working with an older model for a while, you will be amazed at the advancements that have been made.  So we’ve put together a guide to the latest and some of the best pallet wrap machines you can find on the market today from entry level options all the way up to portable intelligent ‘robot’ style models!

 

iWrap S7 Robopac Robot pallet wrap machine, now available with the super deduction tax break

iWrap S7 Robopac Robot pallet wrap machine, now available with the super deduction tax break

Team up your new machine with a high performance film and you’re all set to:

> speed up your despatch operation

> reduce the amount of plastic you use and the amount of film you need to buy

> reduce your liability for the Plastic Tax due to 40% reduced plastic consumption

> build in safety with high performance film combined with latest machine advancements

> reduce your film costs by 25% on your cost per wrapped pallet

Unlocking future savings with the super tax deduction tax break

We think this really is too good to miss! Not only are you benefitting hugely from your initial investment, it will continue to pay dividends down the line as you start to reap the on-going accumulated savings.

There is a lot to consider and a good place to start is by asking your packaging supplier to come in, provide you with a complete overview of your operation, working with you to understand what type of machinery will serve you best. Performing a complete plastic audit will help you can see in real terms the plastic and financial savings you can make, on top of the tax break.

If you would like further information on how to get started, please drop us a message using the form below.

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How to make sure you’re using the correct hand pallet wrap

With so many pallet wrap or stretch wrap solutions on the market now, it can be confusing to understand what products would be right for your situation and set up. Adding to this confusion is the impending Plastic Packaging tax and the seemingly expensive consequences of not making a smart decision quickly, as well as the noise and misinformation about recycled pallet wrap. So what’s the best course of action right now that gets you prepared and in a really good, informed place ahead of next April and hopefully saving some money too?

We would say it’s got a lot to do with good research, seeing products being demonstrated, such as Grip Film for example, in your own warehouse and gaining a better understanding of the best way to save on plastic as well as saving money. Sometimes it’s not immediately obvious. Intrigued? Let’s take a closer look.

Machine wrap or hand pallet wrap?

Just because you’re a high volume user of pallet wrap, it doesn’t necessarily mean that machine pallet wrap is the right choice for you. Yes, volume plays a part in it but what’s more important is how you’re set up and how your warehouse is organised. So as a rule of thumb, if your operation is spread over a large area with separate teams picking and building orders ready for despatch, then hand wrapping pallets it probably your best option. But it is always a good idea to take stock of how you’re currently prepping your despatches to see if there is a faster and in turn cheaper way to do this.  A trusted packaging supplier who has the experience and an understanding gained through years of visiting clients on-site may just have a different approach on how to best optimise your process. It’s worth asking them to come in and look to make sure you’re getting the very best from your resources.

Ask your packaging supplier for a demonstration

Sometimes it can be hard to imagine in real terms what a simple product swap can deliver and the increased yields that can be made. This could be benefits such as speeding up your palletising, spending less money per pallet wrapped and more significantly with the Plastic Packaging Tax just over a year away, a reduction in the plastic you use. In addition to that, there are also could be some very impressive Health and Safety gains to be had with the right product. Seeing such a product in action in your own warehouse really can help you to understand how your team can use it and allows you to get their buy-in too from an early stage if you want to change products. So ask for your supplier to come in for a demonstration.

We have our own very busy 50,000 square foot warehouse from which we despatch many thousands of pallets. We do use a pallet wrap machine but we also require the flexibility of building orders in separate areas around our warehouse depending on the products and the clients we are preparing orders for.  So we did the same, asked for demonstrations from our own suppliers so we could understand more about the latest product developments and see what could work better for us.

How we found the correct hand pallet wrap

The Demonstration

To understand how a pallet or stretch wrap can work for you, our clients,  and deliver all those advantages means we need to know how to best use these products ourselves. Speeding up the palletising process is obviously important to us to make sure our clients receive their deliveries on time for the least cost. The Grip Film System was demonstrated to us by wrapping like for like pallets in our own warehouse, comparing it to a standard hand pallet wrap. See the video below.

Our 4 Main Findings

The Applicator

The first thing that struck us was the look of the applicator itself. Completely different in appearance from other applicators, it looked impressive and felt good to hold due to its ergonomic design. It was incredibly lightweight, and despite it looking quite different, our warehouse team were keen to try it out!

The Speed

The speed of application was a real watershed moment, cutting nearly 30 seconds off the time taken to wrap a pallet compared to the standard pallet wrapping method. Imagine that time saving on every pallet you send out! There is quite a lot going on here that speeds this process up. There is the applicator itself that controls the film coming off the roll much more effectively which means the operative can wrap faster. But its design also means the operative can walk forwards around the pallet which again is so much faster, minimising any stooping at the base of the pallet.

The Safety

So not only is it faster, it becomes so much safer too. No more walking backwards around pallets. No more trips and falls waiting to happen. A massive reduction in RSI and back strain is a huge benefit for the operatives and in turn your business.

The Savings

Longer roll lengths, a guarantee of being able to use every single meter of the roll and superfast roll changes all contribute to making this a fast, time and money-saving system.  And as you can see from the videos, fewer revolutions around the pallet are needed meaning much less plastic is used – and that’s down to the film itself.

A thinner film but greater load stability? How does that work?

It doesn’t seem to make sense, does it? The answer to the greater stability lies in how the operative can really maximise the application process with the applicator and the pre-stretched film. The applicator makes it easy for effective necking and roping to really stabilise the load. In the video below, you can see the comparative film stretch test which shows the incredible strength obtained through pre-stretching the film before it goes on the roll. The typical micron thickness of a standard stretch hand pallet wrap is around 20 microns. Grip Film Superior and Premium films are just 6 and 9 microns respectively. And as we go to press, we have learned of another hand pallet wrap in the Grip Film portfolio, the Elite – which comes in at just 5 microns!

And The Grip Film advantage doesn’t stop there!

Grip Film Hand Pallet Wrap

Grip Film Hand Pallet Wrap

With the thinner film being used and less plastic use overall, this can only help you as we move towards the Plastic Packaging Tax. This ‘green tax’ is to dissuade the continued use of virgin plastic and to encourage the use of recycled plastic. Unfortunately, hand pallet wrap with recycled content does not exist and tentative production of this so far has seen the film produced much, much thicker so the user would end up using so much more plastic. It defeats the whole object. Using less, even if it is virgin plastic, is no doubt the better way to go. This will help you to reduce the impact of the tax as well as your impact on the environment. Looks like a win-win to us!

We’re really keen to pass on all our learnings from the Grip Film product demonstrations in our own warehouse to you. So if you like the sound of using less plastic, speeding up your palletising and spending less on every pallet you wrap – we’d love to show you in your own warehouse! Drop us a message in the form below.

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With so many options on the market such as different pallet wrap film strengths and grades, hand and machine wrap options, blown or stretch film  – it can become pretty confusing.  You may also be looking for eco-friendly options with health and safety solutions as well as advice on how to be as efficient as possible with your pallet wrap.  This can have a huge impact on time and budget savings so there’s a lot at stake. So how can you really know which pallet wrap is the right one for your business? Let’s explore the options in detail.

Hand or machine pallet wrap?

This really comes down to the size of your business and what will be most cost effective, taking in consideration the trade off in staffing levels and labour time  versus mechanising this process. In a business where a low number of pallets are being wrapped each month, it makes sense to invest in a hand pallet wrap solution rather than the expense of machine wrap. But that’s not the end of the story! There are still plenty of opportunities to be had in terms of eco friendly options to reduce your single use plastic consumption as well as improving on health and safety in the warehouse. One such product is the Gripfilm system which boasts a whole range of features.

 

Making sense of pallet wrap

Making sense of pallet wrap

Slips and trips during the palletising process can be eliminated by this system as the user is able to work forwards around the pallet using the patented special dispenser. It promotes faster wrapping thus reducing the price per pallet in terms of reduced labour time. More than this though, Gripfilm has the capacity to reduce the cost per pallet even further as less film is needed. This is what is known in the industry as a high performance film when compared to ordinary stretch film as it much thinner. Using this could deliver a cost per pallet reduction of 40%. Something else to think about is if your operation is spread over a large area and you have lots of people picking and building orders for despatch, hand wrapping would be the preferred option. This will eliminate the travelling time to a machine wrapper and creating bottlenecks.

Time to automate?

If your business is wrapping and despatching over 15 pallets a day, it may be a good time to look at automation. There is lots of scope here to gain cost advantages based on the film and machinery used. How the machine is set up will have a huge impact on the amount of film used. The sweet spot is being able to use the least amount of film possible to stabilise the load. Getting the right machinery and the right film is critical and it may be a good time to call in some expert advice to get this optimally set up. There are many high performance films on the market which can deliver incredible results using minimal volume and therefore become eco-friendly options. Break through technologies in film materials allow for even further reduction of single use plastic consumption which improves your cost per pallet and green credentials.

Making sense of pallet wrap

To fully realise the true cost reducing potential of new pallet wrap materials and processes, why not get in touch for a completely free, no obligation review. We can provide a complete report on how and where you can save money from day 1.

 

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