Chancellor Rishi Sunak announced a fantastic way to help kickstart your business this tax year and next, and that's the Super Deduction tax relief. What is it, and how is it going to help you?
Surprisingly, many business owners haven't heard of this new tax relief, but it is temporary for the next two tax years and allows limited companies to buy certain qualifying equipment then claim 130% as a capital allowance.
The treasury has said they believe the new Super Deduction tax relief should increase business spending and overall investment. They're hoping for a further £20 billion in extra purchases this year.
So, what qualifies?
- Computer equipment
- Trucks and vans
- Trades tools and other equipment
- harging points
Many other purchases qualify too!
Be careful when disposing of assets you purchased with the Super Deduction too quickly after it ends, as you may end up paying more in tax than you were about to save.
Sadly, it's not possible to acquire assets such as company cars using the Super Deduction, so it's worth planning your purchase strategy before you spend any of your hard-earned cash.
You don't want to go on a spending spree then be penalised later on.
If anything I've written here resonates with you, call me on 01604 420057 and let's see how we can help you.