The tax relief few businesses know about - Compex IT

The tax relief few businesses know about

A quick summary: When you buy certain new equipment (including computers) you can claim 130% capital allowance

What that means: If you spend £1,000 on computer equipment, it’ll reduce your corporation tax bill as if you had spent £1,300

How long does it last? It started on 1st April 2021 and lasts two years

Have you heard of super-deduction?

When you buy certain new equipment (including computers) you can claim 130% capital allowance.

What that means is that you can write off more than the cost of the purchase on your corporation tax bill.

For example, if you spend £1,000 on computer equipment, it’ll reduce your corporation tax bill as if you had spent £1,300.

It was designed to encourage you to invest in your business. And it’s a generous relief…

Your accountant should be fully aware of it (and if you fancy a little nap, you can read the HMRC summary here)

If you want new computers in the next couple of years, we recommend you act quickly

Supplies of hardware are still disrupted due to the pandemic. It’s still difficult to get hold of certain specifications or pieces of equipment.

You really should think ahead about what new hardware your business could need in the next few years.

That way we can help you plan ahead and put in advance orders on new technology for you.

If you can see any need at all to purchase new hardware in the next two years – act now, and benefit from super-deduction.

If you’d like to know more, why not Contact us today