A new tax relief no many businesses know about

Summary: When you buy certain equipment such as plant and machinery (including computers) you can claim 130% capital allowance

What it means: If you were to spend £1000 on computer equipment, you corporation tax bill will be reduced as thou you had spent £1300

How long for? It was announced that it commenced on 1st April 2012 and lasts for a period of 2 years

Budget 2021 super-deduction

Have you heard of super-deduction ?

When you buy certain new plant and machinery (including computers) you can claim 130% capital allowance.

What that means is you can write off more than the cost to purchase on your corporation tax bill.

It was designed to encourage you to invest in your business. It is quite a generous relief…..

Most accountants should be fully aware of it (and if you fancy a little nap, you can read the HMRC summary here)

If your looking at new computers over the next couple of years, we recommend you act pretty quick

Supplies of certain hardware are still disrupted due to the pandemic. Certain equipment or specific specifications are still in short supply. As you will know if you have tried to order an IPad recently.

Now is the time to think ahead about what hardware your business could need over the coming years.

That way we can help you to plan ahead and place advance orders on new technology to ensure your business is best equipped going forward.

If you can see any need to purchase new hardware in the next two years – act now, this will see your business benefit from the super-deduction.