HMRC TAX RELIEF DEADLINE APPROACHES

You could miss out on a huge tax advantage that ends on March 31st!

The super-deduction allowance is a specific tax incentive designed to encourage businesses to invest in new assets and equipment. The new scheme means that the purchase of any qualifying equipment for your business is considered tax-deductible. The new rate of 130% deduction means that you can pay less tax when calculating your annual corporation tax bill.

This super-deduction started on 1st April 2021 but end on March 31st!

Any investment that you make in qualifying equipment can be deducted at 130% of the total amount.

The best part? If you can’t afford to buy assets outright, such as plant and machinery, you can still acquire assets using a hire-purchase agreement to qualify. So long as the asset eventually passes into the ownership of the business, you can deduct 130% of the total capital amount against tax bills.

For example, if a business invests £100,000 in new equipment this year, it can deduct £130,000 from taxable profits in year one.

Previously, similar investments would be written off at 18% over several years.

To see our current stock of equipment that’s available click on this link!

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