Take advantage of the super-deduction to re-fit your office
Preparing to welcome teams back to a shared space, companies are re-evaluating the suitability of their business hub. But should a redesigned workspace be your priority when spending plans are cautious?
The answer is ‘YES’ — because there’s a huge financial incentive to do so. Now is the time to make your workplace the productive, creative space you need.
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances régime is amongst the world’s most competitive.
Ref: UK Government
What is Super-deduction?
For expenditure incurred from April 1st 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying investments, including office furniture.
• A company incurring £1m of qualifying expenditure decides to claim the super-deduction
• Spending £1m on qualifying investments will mean the company can deduct £1.3m (130% of the initial investment) in computing its taxable profits
• Deducting £1.3m from taxable profits will save the company up to 19% of that – or £247,000 – on its corporation tax bill.
Furniture is considered a tangible capital asset used in the course of business for the purpose of claiming capital allowances.
Note: To qualify for the super-deduction, you must be a corporate entity paying corporation tax on taxable profits.
We can support you to finance furniture investments with repayment options that suit your needs. Contact firstname.lastname@example.org to find out more.