Super Deduction Tax Deadline
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Super deduction is a tax allowance that allows your business to invest in new IT whilst the taxman helps to pay for it. But this is coming to an end on 31st March 2023. You need to act now to take advantage of this tax relief
Super Deduction – is it generous?
Have you heard of super deduction? Super deduction was introduced a couple of years ago and is a tax relief designed to encourage businesses to invest. Set at 130% of your equipment spend it is generous tax relief and allows you to offset some of the investment . This means for every £1000 you spend on computers, servers, laptops, monitors, networking equipment etc you will reduce your corporation tax as if you had spent £1300.
What could you buy?
Have a think about the kit you were planning on buying over the next 12 months. Desktop computers, laptops for home workers, a second monitor to help staff productivity (they will really love you for buying this one). How about a server or replacing that old router that you suspect is not supported anymore. The rules state that equipment has to be new and second user equipment cannot be claimed for. We have already helped dozens of Bristol based businesses to utilise this little-known relief. Maybe the government hasn’t advertised it very well but we have found most business owners are not aware of this tax relief. This is a real shame as one business we assisted was able to offset £39,000 against their corporation tax bill.
Where can I get more information?
I am not a tax specialist, actually I am the least tax savvy person you are likely to meet. However, I am good at finding out information and so I have read the detail. For those so inclined they can go find out more for themselves by popping over to HMRC and having a read. For everyone else I would highly recommend you go have a conversation with your accountant or tax specialist. I am sure there are some ultra-fine print that says 0.0001% of businesses are unable to claim this and I wouldn’t want this to be you. Please go find out the rules for your particular business.
When does it end?
You need to act quickly! The government have just re-announced the end date as 31st March 2023. But that is less time that you think. Let me tell you why.
- I always prefer to work with business owners to find the “right solution” rather than “any solution”. So, we need to allow a couple of weeks to compare diaries.
- There is still a shortage of some equipment due to the ongoing China lockdowns and other supply-chain problems. Although it is possible to get something that will do the job, it is much better to get the right kit for your business.
- Great, we now have the kit ordered but it needs to be configured for your businesses. Our project team will make sure everything is set up properly and that security is tightened down before releasing it for installation. This adds a few more days to the time needed.
- Oh, and we have Christmas which will scupper a few weeks. I would suggest you book a 15-minute chat now (see below). After all it is just a chat to get a feel for what your business needs.
How much will I save
Your accountant is probably the best person to advise you and to ensure your business can take advantage of this tax relief. However, to give a general idea as to the sort of cost and corporation tax saving I have included a basic calculator below. The prices are based on business equipment we have supplied to most businesses for general use. This means the price is very much “in the region of” rather than a quote you can hold me to. In case you wondered the price includes labour time so we can configure the kit to your business and ensure it is locked down securely. The aim is that you turn it on and use it.
The form also allows you to send this information to your email address so you have it for general reference. This is completely optional.
PRIVACY WARNING: If you do decide to fill in your email then I will get a copy of your form including your email address. Yes, I promise I won’t be selling or passing over your info to anyone else and I certainly won’t be spamming you myself. I WILL send you a follow up email at some point to remind you about the deadline but I absolutely will not be filling your inbox with rubbish. Remember, you don’t have to input your email to use the form.
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Choosing the right kit
Stage one is about asking lots of questions. What is right for one business is not right for the next. I believe in chatting through what currently works and what doesn’t work to help you get the right hardware for your circumstances. Many IT Companies sell the fastest and newest tech but I believe there is a better way. In my opinion getting the right IT is about getting something that works for you now and can adapt to your 3-year plan. Have a think about the following questions:
- Will you be opening more offices or branches?
- Are more staff working from home now?
- Is your business in a growth phase? If so, how quickly is it growing?
- Are there new opportunities in your marketplace?
Once we understand your answers to these questions we are better placed to know how to help.
What next?
One of my passions is helping businesses to succeed and if I can help you save some money as well – even better. You can fill out our contact form, phone us or click on the appointment button below and let’s start a conversation to see if I can help your business. Our guarantee:
- There are no hidden charges – this is a 100% free 15 minute consultation with no hidden charges.
- We will never spam you or sell on your contact details.
- We will treat your information with absolute confidentiality.