As a managed IT support company we will tell you that having relatively new equipment will pay for itself many-fold. The UK Government is now helping to pay your IT equipment by granting 130% capital allowance. This means for every £1000 you spend on computer equipment, you can reduce your corporation tax bill as if you had spent £1300. Time is limited as this relief has an end-date so you need to start planning this now.
Super Deduction – what is it?
Have you heard of super deduction? Super deduction is a tax relief introduced by the UK government to encourage you to invest in your business. It is a generous relief that allows you to claim 130% capital allowance when you buy certain equipment such as IT equipment.
This means for every £1000 you spend on computer equipment (such as laptops, desktops and monitors) you will reduce your corporation tax as if you had spent £1300.
What sort of equipment can you buy?
The rules allow you to purchase any computer or network equipment so that could be laptops, desktop computers, monitors, routers, switches, firewalls, printers etc. Equipment has to be new as the rules do not allow second user equipment to be included on the relief claim.
We have been working with Bristol based businesses helping them to utilise this little-known relief. It appears very few companies are aware of this tax relief and yet it is worth potentially £1000s of pounds for some businesses. Obviously the more you spend on IT hardware the greater your claim for capital allowances will be.
Is there more information available?
If you fancy spending some time reading the official government information (I must admit it sent me to sleep when I first read it) then HMRC is your best bet.
Better still, talk with your accountant. A good accountant will be able to tell you how much you are likely to save once they know how much you are likely to spend on equipment.
How long have I got?
You need to act quickly if you want to utilise this benefit to its fullest. The relief is available until the end of March 2023 but there are a few things to consider.
IT hardware is becoming more difficult to get hold of due to the shortage of computer chips. If you are going to make the most of this benefit you will want to be buying the right equipment not just any equipment.
We have been gearing up for this for a long time and have a team trained on helping business owners to choose the right computer equipment for their business.
Normally a few months is enough time to plan, purchase and implement an IT roll out for a business with 10 to 100 staff. However, with the current shortages this could easily become 6 to 9 months or more.
How to choose the right kit
A good IT support company will ask you lots of questions to help you get the right hardware for your circumstances. It is not about choosing the fastest or most expensive kit. Getting the right equipment is about how you want to use IT both now and in the future.
Have a think about the following questions:
- Are your staff going to be working from home more now?
- Will you be opening more offices?
- Is your business growing or staying the same?
- What about new marketplaces for you to operate in?
- How are you protecting your business data?
Once we understand your answers to these questions we are better placed to know how to help.
Unlike most IT support companies, we know all about super deduction. We have been preparing for it for a long time.
Fill out our contact form, phone us or click on the appointment button below and lets start a conversation to see if we are able to help you and your business.
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