The Super Tax Deduction explained
What is the Super Tax Deduction and why is it being introduced?
Following the Coronavirus pandemic that has engulfed the world for last year, it’s no surprise that business investment levels have fallen. To counteract this reduction and improve the UK’s productivity, the government has introduced more generous capital allowances to help encourage more business investments.
The super-deduction tax break allows you to cut your company tax bill by 25p for every pound of qualifying spending. It is the government’s hope that this will incentivise businesses to make more investments and/or accelerate the timescale of future investments.
How can Direct Computers help me?
One of the sectors that qualifies for this super-deduction is computer equipment and servers. This means any qualifying products your business purchases from us will benefit from this improved rate.
We can provide you and your team with new equipment and upgrade outdated systems. We can source multiple quantities of specific products and have a range of business essentials in stock. When looking for computer equipment, we help businesses with their needs daily.
As well as providing top quality computer equipment we also offer a range of IT services tailored to the needs of businesses across the country. Even though these services aren't tax deductible, with the savings you make on equipment, it may be worth considering setting up IT support, remote support, Data and Cloud services and/or cyber security services.
When can I benefit?
From 1st April 2021 until 31st March 2023, companies investing in qualifying assets will be able to claim.
Be sure to read up on the deduction and contact your accountant for advice before investing in new assets.