2021 has been a year of ever-changing pandemic restrictions and an ongoing debate between businesses and employees about working from home. Now the Government has laid out plans to encourage businesses to invest in new equipment. Part of this is a new Super-deduction tax which enables companies to make enhanced tax claims from April 2021 to March 2023.
What is the Super-deduction tax?
The Super-deduction tax enables businesses that have made investments in qualifying new plant and machinery assets to claim the following:
- 130% super-deduction capital allowance on qualifying plant and machinery investments
- 50% first-year allowance for qualifying special rate assets
New office furniture and equipment falls into this category so businesses are encouraged to invest in creating a well designed space for their teams to come back to.
Why invest in new office equipment?
Investing in new office furniture creates a place that your employees will feel comfortable in and want to spend time at. With space utilisation changing, the way offices were designed in the past means they are not fit for modern day use.
Investing in high quality and modern furniture will help to future proof your office space. Designing a space with both usage and your brand in mind means that you’ll less likely need to invest again for years to come. If you have expansion plans too, designing with this in mind means that you won’t have to re-spend in the coming years.
How much can you save?
All companies who are eligible to pay corporation tax (currently set at 19%) that spend £1000 on qualifying items will not pay corporation tax on the sum of £1300.
So to break that down further, for every £1000 you spend you will save £247.
What investments qualify?
You can invest in the following items and qualify for the super-deduction tax relief:
- Solar panels
- Computer equipment and servers
- Office chairs and desks
- Electric vehicle charge points
- Refrigeration units
- Foundry equipment
How can Fenns help?
Our team can help you to plan your space and create CAD designs to show you how your new office will look. We then source all furnishings and equipment, help with project management and ensure your new space is delivered on spec, to the budget and hits the deadline.