Get a Super-Deduction: Tax Relief for Limited Companies: Buy new computers and claim 130% capital allowance

If your business is a Limited company and pays corporation tax it can currently claim 130% capital allowance against certain new equipment. Equipment includes new computers, servers, NAS boxes and other IT equipment.

This means that if you buy some new computer equipment for £1000 it will reduce your corporation tax bill as if you had spent £1300.

This Super-Deduction tax relief scheme is running from 1st April 2021 and lasts two years.

This has been introduced to encourage you to invest in your business. Your accountant should be able to help but you can read the HMRC summary here.

If you want new computers in the next couple of years, we recommend you act quickly

The pandemic has disrupted hardware supplies as more people bought equipment for staff to work from home and also because production in manufacturing plants was affected by lockdowns around the world.

It’s still difficult to get hold of certain specifications or pieces of equipment.

You should think ahead about what new hardware your business could need in the next few years.

That way we can help you plan ahead and be ready with new technology for you.

If you can see any need at all to purchase new hardware in the next two years – act now, and benefit from super-deduction.

Even if your business is not a limited company I recommend that you let me know so that I can look out for offers but also let you know about any new schemes that get announced that you may be eligible for.

What should you do next?

Have a look at the HMRC information or talk to your accountant

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