Is it a bird, is it a plane, no, its Super Deductions Tax!

August 19, 2022

With the rising cost of living, any money saving news is welcome.

Guess what? … We have some!

Back in April 2021 we shared information regarding super tax deductions. Basically, it’s a way of getting 25p in the pound back on certain purchases. Since the Covid-19 pandemic, existing levels of business investment have fallen, with a reduction of 11.6%. The government has introduced the super-deduction to give companies a strong incentive to make additional investments, and to bring planned investments forward.

If you’re thinking of buying some equipment to improve your business, it a great deal and that’s why we’re sharing the information again.

There’s a 130% uplift on Super Deductions on expenditure incurred between 1 April 2021 and 31 March 2023.  During this period, companies can claim 130% capital allowances on investments in qualifying plant and machinery which means that for every £1 a company invests, their taxes are cut by up to 25p.

What makes this even more interesting to our clients is the definition of “plant and machinery” in this case.

HMRC have published guidance around the topic and in that guidance, items that are classed in this category that qualify for the Super Deductions include: –

Computer equipment & servers – does your IT equipment need upgrading to future proof your activity? 

Office Chairs & Desks – are you looking to invest in yourself and your staff with ergonomically designed chairs and chairs?  Did you think stand/sit desks were out of your budget?

Electrical Vehicle Charge Points – as the countdown to Diesel engines production ceases, there’s never been a better time to look to the future and benefit your workplace and your visitor experience too.

Solar panels – which could be a worthwhile investment with the raising cost of energy bills.

It looks like an ideal time to invest in your company, your staff and the environment and encourage safer and conscientious business decisions.

We’ll be talking to all of our clients around this in coming months – always inspiring them to aspire!