Described as ‘the UK’s most attractive business tax incentive ever offered’, available with a short window of opportunity, businesses are being offered a whopping new tax incentive to invest in new assets and computers.
Introduced by the government as a response to help bounce back from the challenges of Covid, this is called Super-Deduction. At an unprecedented rate of 130%!
“New equipment increases productivity”, says Mr Sunak. Our daily-use technology perhaps demonstrates this more markedly than any other – with slicker, faster, more reliable computers in our businesses, maximising staff performance, minimising working downtime, quickly paying for itself many times over.
To evidence this further, Mr Sunak puts his wallet where his mouth is. The super-deduction is intended to spur business investment, boost the UK economic recovery, and improve productivity levels. With a strict deadline in place set at 31 March next year.
The longer-term intention is, of course, to increase government revenue. With the years following, in turn, leading to businesses making more profits. All the more income for the government to tax from that time on.
So in order to encourage UK businesses to invest quickly, this timescale is intentionally short. And the allowances designed to encourage investment now by providing super-generous rebates.
What sort of things can our business buy?
Not only new computers and laptops, but a wide range of plant and machinery besides. You can choose to purchase new workstations, PCs, laptops, servers, monitors and more, or network hardware, routers, WiFi equipment, switches, firewalls, the list goes on.
Simply put, for every £1000 you spend, your corporation tax bill will reduce as if you had spent £1300.
Essentially the only limitation is that the equipment must be brand new (not second user) with millions of pounds dedicated to support this. In essence, the more you spend on eligible assets now, the greater your claim for capital allowances will be.
This really is super-smashing, but why the rush?
Have you noticed how technology equipment that used to be commonly, quickly available, often ‘next day’, is now taking much longer to arrive? And how steeply some prices are increasing?
Ask your IT admin, or geek friends, this affects home computers too - the price of ‘graphics cards’ as found inside gaming computers for example, more than doubled in price, worse still, many now unavailable at all. Slowly but surely this pattern is especially hitting business IT hardware hardest of all.
This is because technology is becoming increasingly scarce due to silicon chip shortages, combined with supply chain challenges, furthermore in the UK compounded by the 'B' word (dare we still say) namely Brexit.
With some areas of technology, for example networking equipment distributors and manufacturers showing ‘no restock date known’ at all.
Associated business challenges - don't get left behind
Furthermore another reason to act now is because while a small business might have previously needed to allow just a few months, or even weeks, to plan, procure and put in place their new IT roll-out, current equipment shortages are already stretching this to four or five months if not more.
So to make the most of the benefit with a choice of hardware, not more costly leftovers, purchasing the right equipment now will benefit your business for years to come.
Everything IT help - call now for 130% no-obligation, confidential advice
Everything IT understands this unique combination of events, working in close collaboration with our long-experienced procurement teams, tax specialists, and together with your specific business requirements, we can help ensure that - for now at least - you get exactly what you want, to ensure your technology investment bolsters your business, and maximises your super-relief potential to the very fullest.
So don't miss out. The best time in history to invest in new business computer hardware is right now, today, but time is running out. Why wait? Feel free to call the nice, smashing, super-friendly Everything IT team now on Bath 01225 434343 to find out more.
For further details see: HMRC
