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Super Deduction News

Super Deduction: Spend on IT & Claim the Benefit

The HM Treasury have introduced Super Deduction to the budget 2021 which is the biggest two year tax cut for businesses that we have ever seen in British history!  The Super Deduction started on 1st April 2021 and will run for two years until 31st March 2023 – it allows for a huge 130% super-deduction tax break against plant and machinery assets.

What does this mean for your business?

This massive tax cut gives your business a huge incentive to invest, enabling your business to grow.  The initiative has been put in place to kick start the economy post Covid pandemic to allow businesses to invest and grow and in turn supporting jobs and opportunities across the UK.

It means that you can cut your tax bill by 25p for every £1 you invest.  The scheme is available to companies of all sizes as long as you are paying corporation tax.

What assets can you claim on?

Your business can claim on any qualifying plant and machinery assets that will enable your business to be more productive such as IT equipment and servers, as well as other tangible assets like vehicles, machinery or even office desks and chairs.  As long as the assets are brand new and not used or leased, if they can be used to allow your business to be more productive, they are likely to be a qualifying asset.  Further information and guidance from the government can be found here: Super Deduction Guidance.

What do the calculations look like?

As an example a CEO of a company may wish to invest £250,000 on brand new computers and servers.  Here are the calculations before the Super Deduction allowance was introduced and after, to show the significant increase in cost savings through the new scheme.

Super Deduction Calculation Example

This is a massive saving which will help to improve cash flow and allow your business to grow sooner rather than later.  Download the HM Treasury Super Deduction fact sheet via the link below to find out more information.

Super Deduction Fact Sheet

Rishi Sunak explains the Super Deduction

Take the Next Step

Start spending and investing in brand new technology now – don’t delay!  Investment in your IT infrastructure will enable you to scale your business and meet your business growth objectives.

We can advise, plan and deliver bespoke solutions to meet your requirements to replace or enhance your existing IT infrastructure.

Call us on 0333 220 0413 to speak to one of our specialist solution advisers to take the next step towards a more productive and cost efficient 2021.