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 your business?
Although the new Super Deduction is a great idea, plan before your spending spree!
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.
"Buy a £1,000 computer and reduce your corporation tax bill by £1,300!"
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?
Trucks and vans
Trades tools and other equipment
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.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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