The government’s tax super-deduction for business ends in March – has your business made the most of it?
Described as the ‘biggest business tax cut in modern British history’ by former Chancellor Rishi Sunak, the super-deduction makes it more affordable for businesses to invest in equipment, plant and machinery to enhance their operations.
Here’s a guide to the tax allowance and how your business can benefit from it.
The super-deduction is a tax allowance introduced by the government in 2021 to help businesses invest in new plant and machinery. It offers 130% relief on qualifying assets in the first year – so for every pound your company invests, your taxes are cut by up to 25p.
Former chancellor Rishi Sunak announced the super-deduction in the Spring Budget 2021 to help businesses get back on their feet after Covid lockdowns.
The capital allowance ends on 31 March 2023, so now is the time to invest.
If your business pays corporation tax and is not a sole trader or partnership, you can benefit from the tax cut.
You must invest in qualifying plant or machinery assets before 31 March 2023.
The rule covers new plant and machinery that have been purchased (or funded by a Hire Purchase agreement in some cases). In short, your business must own the assets.
Eligible assets include (but are not limited to):
If you’re planning to upgrade your office telephony or security systems, now is the time to do it. The super-deduction tax allowance will apply to new telephony and security equipment purchased before 31 March 2023.
To discuss your business’ requirements, contact the FutureTel team today.
Simply fill in our quick and easy online form, to get a free, no obligation quote that is tailored to your business needs.