Team Partners Telecommunications

Super-deduction

Posted on Feb 22, 2022

There are times in life when one might imagine that there’s a conspiracy of silence underway. There are other times when certain shops or airlines have absolutely tremendous sales or offers that somehow you only hear about once they’re over. And then there’s the odd opportunity that lands at your door and you can grab it.

This month’s blog is about one of these.

Super Relief may sound like an advertisement for, well, you know, but this is about something quite different. If you have a company that pays Corporation Tax then should you choose to invest in what is fairly loosely described as ‘plant and machinery’ between 1^st April this year and the end of March next, you can claim for a ‘super-deduction’ that will effectively give you an allowance of 130%, rather than the usual 18% main rate write down. It also gives you a first-year allowance of 50% on most plant and machinery investments, rather than the usual 6%.

There are some exclusions, one of which is used or second-hand equipment. Another applies to those involved in a ring-fenced activity, such as oil and gas industries (apparently these ring fenced activates already receive a 100% allowance. Not that such an allowance being given to ecologically unsound industries as oil and gas should make us wonder.

It’s thought that roughly 2.8 million companies should be able to benefit from this relief, so how could it affect those reading this blog? In simple terms ‘plant and machinery’ includes just about everything that has a plug on it in your office. It certainly includes all your IT and communications equipment, your printers, laptops, desktops, firewalls and switches as well as mobile phones. And vans.

A word to the wise here. Don’t wait, at least not as far as your IT equipment and communications equipment is concerned. Next March may feel like eons away, but it will come around before you know it, and with the current world shortage of computer chips you could find yourself ending up buying what’s available rather than what you want. Act now, especially if your plans for the future include a move or expansion. Here’s a link to the Government’s official announcement: https://www.gov.uk/guidance/super-deduction