If you have plans to invest in your IT equipment over the next 18 months, did you know there’s a temporary UK tax relief which can save your business money?
It’s called Super Deduction and it started on the 1st April 2021 and is running until 31st March 2023.
What is Super Deduction?
Super Deduction is a temporary tax relief that has been launched by the government to help limited companies.
It basically means when you buy new equipment (including computers) you can claim 130% capital allowance. The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest
Here’s an example of how it works:
If you spend £1000 on computer equipment, it’ll reduce your corporation tax bill as if you had spent £1,300.
So basically buying new computers is now more tax efficient!
This tax relief can be used for purchases of computer equipment and servers, as well as office chairs and desks.
Chris Thomas, Joint Managing Director of Bluegrass Group comments “With the global chip shortage still at large and overall supplies of hardware still disrupted by the pandemic, we’re advising clients to start planning for their future hardware requirements sooner rather than later. This government launched tax relief is another great reason not to delay those hardware needs. It’s a significant saving for businesses and with technology being so pivotal to business performance these days, having the right hardware in place is now directly linked to success.”