Refrigerated fleet operators are encouraged to act now to take advantage of the tax-saving benefits on offer from the Government’s Super-Deduction Scheme which could see them save up to 25p for every £1 they invest.
Under the scheme – announced during the 2021 Spring Budget – limited companies investing in qualifying new plant and machinery assets will be able to claim a 130% super-deduction capital allowance on investments and a 50% first-year allowance for qualifying special rate assets.
So, to take advantage of the tax saving on offer, buyers must complete any new van purchases before 31st March 2023 – but to achieve that in the current climate of long lead times, customers are reminded they must place orders now.
The good news is the super-deduction is applicable to fridge and freezer vans and there is no limit on spend, meaning that there are significant tax benefits on offer for those looking to invest in new refrigerated or freezer vehicles, either as an upgrade or to launch new business services.
Recent figures released by the Society of Motor Manufacturers and Traders (SMMT) found that the number of commercial vehicles on Britain’s roads has reached the highest level in history, but fleet renewal has slowed. The average age of vans on the UK’s roads is 8.7 years old meaning that the majority will not comply with Euro 6 emissions standards seen in almost all vans and trucks sold from September 2016 onwards.
With Low Emissions Zones being introduced in cities across the UK, now is a good time for fleet operators and businesses transporting goods to upgrade their LCVs. Not only will your van fleet be more reliable but upgrading to a Euro 6 engine or hybrid / EV will ensure they are able to continue to operate without facing major daily costs.
Upgrading your fleet or buying a new temperature-controlled van from CoolKit also means you’ll be miles ahead in productivity, payload and performance.
The super-deduction scheme is proposed to end in March 2023 and global supply chain constraints are impacting the manufacturing and delivery lead times for new vehicles with some orders taking close to nine months to fulfil.
How much could you save on your fleet upgrade with the super-deduction saving?
|Example Van Cost with Super Deduction Saving (ending March 2023)|
|On the road cash price||£35,000|
|Tax saving (19%)||£8,645|
Speak to one of our experts to find out how you could make savings on your LCV fleet now.