< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ENGINEERING I n the face of rising energy costs, combined with government pressure across all industries to reduce greenhouse gas emissions, a large focus over recent years has been innovating ways to reduce emissions whilst performing everyday tasks. One of the prominent trends driving the UK engineering and manufacturing industries is the integration of advanced automation and digital technologies, including AI. The concept of Industry 4.0, characterized by the fusion of cyber-physical systems, automation, and data exchange, is revolutionizing production processes and enhancing operational efficiency. Sustainability has become a key focus for the UK engineering and manufacturing industries. As the world grapples with climate change and environmental concerns, businesses are recognizing the need for greener practices. Efforts are being made to reduce carbon emissions, optimize waste management, and enhance energy efficiency throughout the production process. The integration of renewable energy sources and the adoption of circular economy principles are also gaining traction. We can expect further advancements in sustainable manufacturing practices as businesses strive to minimize their environmental impact while maintaining profitability. As alluded to above, the principles of the circular economy are being increasingly utilised, turning traditional linear production models on their head. Future engineering Changes in technology are provoking fast adaptations in the region’s engineering industry. 42 Áwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link ENGINEERING © stock.adobe.com/panuwat East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ENGINEERING Circular economy principles aim to minimize waste, maximize resource efficiency, and promote the reuse, recycling, and repurposing of materials. In the context of manufacturing, this involves designing products for durability, easy disassembly, and the recovery of valuable materials. Companies are implementing closed- loop systems, where materials are recycled or regenerated, reducing reliance on finite resources, and minimizing environmental impact. Additionally, collaboration within supply chains is crucial to optimize material flows, ensure responsible sourcing, and promote circular practices at every stage of production. Ultimately, adopting a circular economy seeks to extend the lifespan of the individual manufacturer, as well as aiding the environment. Reducing waste generation and conserving resources safeguards a company’s operations against government waste reduction sanctions, and allows operations to diversify, thus extending beyond the limited resources available. The transition towards electric vehicles (EVs) is another significant development in the UK engineering and manufacturing industries. The UK government’s decision to ban the sale of new petrol and diesel cars by 2030 has accelerated the demand for EVs. This shift not only impacts the automotive sector but also drives changes across the entire manufacturing supply chain. In 2023, there was a noticeably increased investment in the production of electric vehicles, including the manufacturing of batteries, electric motors, and charging infrastructure. The engineering industry will play a crucial role in developing innovative technologies to support the growth of EVs, such as improvements in battery performance and charging speed. This transition towards electric mobility presents both challenges and © stock.adobe.com/phonlamaiphotowww.eastmidlandsbusinesslink.co.uk East Midlands Business Link ENGINEERING opportunities for businesses as they adapt their manufacturing processes to meet the rising demand for cleaner and more sustainable transportation. Digital transformation is revolutionizing the UK engineering and manufacturing industries. By harnessing technologies such as artificial intelligence, internet of things (IoT), and cloud computing, businesses are optimizing processes, improving product quality, and enabling predictive maintenance. The collection and analysis of real-time data allow manufacturers to make data-driven decisions, reduce downtime, and enhance overall operational efficiency. In the first half of 2024, there has been a concerted effort to further integrate digital technologies, with an increased focus on cybersecurity and data privacy. The adoption of advanced analytics and machine learning algorithms will enable manufacturers to gain deeper insights into their operations and drive continuous improvement. Moreover, the use of digital platforms and collaborative tools facilitates communication and cooperation within the supply chain, fostering innovation and agility. The UK engineering and manufacturing industries are experiencing significant developments this year, the effects of which are anticipated to influence the direction of developments for the next 3 to 5 years. From the integration of advanced automation and sustainable manufacturing practices to the transition towards electric vehicles, these sectors are adapting to meet the challenges and opportunities of the modern world. By embracing innovation, driving sustainability, and leveraging digital technologies, UK businesses can position themselves at the forefront of global engineering and manufacturing excellence. The ongoing advancements in these industries contribute to economic growth, job creation, and a more sustainable future for the region. © stock.adobe.com/xiaoliangge East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CORPORATE HOSPITALITY © stock.adobe.com/Daria Tis the season to be taxed Tis the season to be taxedwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link CORPORATE HOSPITALITY As always, it’s important to preface these kinds of discussions with the ubiquitous “if in doubt, seek advice” commentary, as we can only speak for generalist examples and not all rules will apply the same. Typically, there are two different types of gifts that businesses give out. The first is gifts to their employees, usually to show they care and (more realistically) to make employees happier so they won’t think about quitting over the Christmas holiday. The other is gifts given to clients and/or potential customers, and the rules differ. Gifting Employees When it comes to gifting employees there are a couple of things to remember. Firstly, the gifts can be tax deductible if they are less than £50 and it’s not in cash. This is part of HMRC’s “trivial benefits scheme” which sounds rather dystopian, but the exception exists both to allow some generosity but also to not force the HMRC to have to chase a business every time they buy so much as an ice- cream for a member of staff. Gifts to staff must also be non-contractual and cannot be given out as a reward for service – important to note if you were thinking of gifting a particularly good employee more, as others could argue they are being rewarded greater for their service. Technically speaking, the Christmas party can also be tax deductible but, again, it has a number of rules set against it. Firstly, the cost of the event cannot exceed more than £150 per person (inclusive of VAT or transport costs, etc), the event must be to reward staff only, and it must be open to all members of staff. A directors-only party will not count and can land a company in quite a bit of trouble. Keep in mind that the £150 limit for the party is now like an allowance such as income tax. Should the costs increase to even £151 per person, the entire event becomes taxable, regardless of whether that extra £1 came from having to hire a bus to take drunk guests from the event or not. Gifting Clients It’s not quite as common to give gifts to clients but sometimes it does happen to very important customers that you want to show some appreciation for, or those who have been with you for a long time. When it comes to these, they’re almost always fully taxed with no opportunity to deduct costs, but there are some ways around it if you’re careful. Gifts as part of an advertisement scheme or campaign are one such way – if you gift branded goods like pens, mugs, etc, then that can be argued as a business expense via advertising. However, it’s liable that such gifts won’t particularly please the recipient anyway, as they’ll come across as advertisements (not exactly a fun gift). Also, these must be no more than £50 per person, placing a hard limit on what can be given. A better way around it is if your company produces a product that could serve well as a gift – such as clothing or alcohol. You can gift products as advertisement gifts if they’re framed as samples, but it’s important not to only do samples at Christmas and only to existing clients. The HMRC will see through that quite easily. If a company regularly gives out samples, however, then gifting some to preferred clients at Christmas can be seen as a business expense. The real problem is going to come from the clients, however. Except in rare circumstances where you manufacture whiskey and the client loves whiskey, most people will more appreciate a gift at Christmas that is not work-related. By trying to make a corporate gift tax-deductible, you can run the risk of giving a gift the client will see in a negative light. When the main purpose is to show a client you care so they stick with you, branded gifts can make it seem the opposite, so it might be best to stomach the cost and pay full tax on a better present that will keep them happy and working with you. It’s not always worth it to try and cheat the taxman out his money. Giving gifts may be in the Christmas spirit but HMRC aren’t known for their good cheer. How much is tax deductible and how does it work? East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINK Excitement on the road All we want for Christmas is new cars, new technology and new advancements. These cars all bring it in spades. Renault Emblème (demo car) Responding to the challenges raised by climate change and the conservation of resources, the automotive industry is engaged in a major transformation. The Emblème is based on specifications implementing the principles of eco-design. Engineers and designers worked together to find the best solutions in terms of aerodynamics and efficiency. The result is stunning: an elegant shooting brake 4.80 metres long, placing equal emphasis on styling and interior space. With a 70% reduction in the carbon footprint of its components, 50% recycled materials and almost all of the materials used which can be recycled at the end of their life, Renault Emblème demonstrates the capacity of Ampere and its partners to innovate in order to maximise vehicle decarbonisation in the future. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link AUTOLINK Renault Emblème (demo car) East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Suzuki e VITARA The e VITARA is based on the concept model eVX,which was showcased at the Auto Expo held in India in January 2023, and at the JAPAN MOBILITY SHOW in October of the same year. It marks Suzuki’s first global strategic BEV model. With the concept of Emotional Versatile Cruiser, the e VITARA features a design that combines a sense of advanced technology and strength, a BEV powertrain that delivers a nimble and sharp driving experience, an electric 4WD system ALLGRIP-e that provides not only off-road capability but also powerful performance, and a newly developed platform HEARTECT-e specifically for BEVs. The design theme is High-Tech & Adventure, embodying the advanced feel of a BEV and the robust nature of an SUV, inspiring a sense of adventure. The exterior features a striking design characterized by large-diameter tires and a long wheelbase, while the interior incorporates an integrated display with advanced equipment and tough-looking panels and center console, reflecting the High-Tech & Adventure theme. Audi A6 e-tron The state-of-the-art foundations of the Premium Platform Electric (PPE) enable the A6 e-tron to reap the benefits of the most advanced electrification technology. The new entry-level model, simply called A6 e-tron, combines a single electric motor delivering up to 326PS (with launch control) to the rear wheels with an 83kWh battery (75.8 kWh net) developed specifically for the PPE. Aided by exceptionally streamlined bodies, particularly in the case of the Sportback which is notable as the most aerodynamic production Audi to date, this combination can deliver a maximum driving range of up to 382 miles in the A6 Sportback e-tron and up to 361 miles in the A6 Avant e-tron, depending on specification. Combining a maximum charging capacity of 225 kW with a powerful 800- volt electrical system, the new entry-level A6 Sportback e-tron and A6 Avant e-tron achieve an impressive compromise between range and charging performance. Using an AC charging station or home charger delivering up to 11 kW, they can be fully charged from flat in eight hours. Using an HPC fast- charger, they can recharge from 10-80% in just 21 minutes. Skywell Q Skywell, the trailblazing EV brand that combines strong build quality with advanced technology, has unveiled its upcoming ‘Q’ hatchback at the 2024 Paris Motor Show. The agile and athletic new model is Skywell’s first car to make its global debut in Europe; demonstrating the brand’s market Suzuki e VITARAwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link AUTOLINK aspirations. In true Skywell fashion, the Skywell Q is underpinned by its durability, extensive warranty and generous equipment levels, which includes the large opening ‘Skyroof’, a large 15.6” touchscreen display and a 360° panoramic parking camera. The Q’s ergonomic and surprisingly spacious interior places a firm emphasis on practicality, without compromising on character thanks to the large Skyroof, composite fibre panelling, 128-colour ambient lighting and orange accents on the upholstery and dashboard. Through Skywell’s consumer electronics heritage, the Q boasts a superior infotainment system which, in addition to the large 15.6” touchscreen display, consists of the premium German-engineered Metz sound system with 8 speakers, wireless smartphone connectivity and touchscreen displays for rear seat occupants. Audi A6 e-tron Skywell QNext >