Don’t lose your chance to reduce yours, and more importantly, your customer’s tax bills.
With the end of the tax year rapidly approaching, one of the tax efficiencies that was brought in in 2021 is coming to an end.
That was, Super Deduction!
Now, not everybody will have paid attention to this, but they should have.
Why is it important to you and your customers. Well aside from the big kit, this “deal” was also applicable to computer hardware and other things like desks and chairs. This might mean your customers have 30% more in their pot than they thought. It also means, anybody buying kit in the first half of 2023, should be aiming to buy it by the end of March 2023 to make use of this efficiency.
31st March 2023 is the last day companies can take advantage of the UK Government’s generous “Super deduction” Scheme announced in the 2021 Budget, by claiming 130% capital allowances on qualifying plant & machinery ( which includes computer equipment). This scheme was announced in the 2021 budget, starting 1st April 2021 and finishing 31st March 2023.
What does this mean for companies- in very simple terms, spending £1000 on qualifying products, means you deduct £1300 ( 130%) when computing your taxable profit, therefore reducing your taxable profit when paying corporation tax. (Obviously, speak to your tax adviser for more details).
