BUSINESSES CAN CLAIM A 130% ‘SUPER-DEDUCTION’ ON QUALIFYING PLANT AND MACHINERY:
As of April 1st, and for the next 2 years, businesses can cut their taxes by 25% by investing in new equipment and technology! Maybe you’ve recently been thinking of investing into the future of your business but can’t justify the large outgoing costs. If this sounds like you, you’ve now got the perfect opportunity to develop your business, all at a discount!
As confirmed in the Spring Budget, a 130% ‘super-deduction’ is being introduced to incentivise company investment. For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
Under the ‘super-deduction’, firms will be able to cut their taxes by up to 25p for every pound they invest! So, if there’s ever been a good time to invest in your business, it’s now!
WHAT WILL THE NEW CAPITAL ALLOWANCES SCHEME OFFER?
Capital allowances provide taxpayers with the option to ‘write off’ the cost of certain capital assets against taxable income. Companies will have the opportunity to benefit from the following capital allowance measures, therefore lowering their corporation tax bills:
– Super-deduction – this offers companies 130% first year allowance on qualifying main rate plant and machinery from 1 April 2021 until 31 March 2023.
WHAT IS CLASSED AS PLANT AND MACHINERY?
For the purposes of claiming capital allowances, many tangible capital assets used in the course of a trade are considered plant and machinery, including: –
- Computer equipment and servers
- Office chairs and desks
- Phone equipment and phone systems
In order to be eligible for the super-deduction, the plant and machinery purchased must be new and not used for leasing.
The government has offered unprecedented support for businesses during Covid. Even so, pandemic-related economic shocks and the accompanying uncertainty have chilled business investment. This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.
Please speak with your accountant to confirm how you can benefit from the super deduction when purchasing new phone systems. Especially with the demand for flexible working, this is the perfect opportunity to implement your new phone systems! Meaning you can make, take, and transfer calls from anywhere, all under your unique business number!
For details on upgrading your phone system, including Hosted Voice (VoIP) phone solutions, call Trio Telecom on 01727 221303 today.