Super Deduction explained - the tax relief your business NEEDs to know about

There’s never been a better time to invest in your businesses IT Systems.  From April 1st 2021 until the 31st of March 2023, companies investing in new IT qualify for a 130% capital allowance their investments.

What is the Super Deduction?

The super-deduction offered to UK businesses from April the 1st 2021 is one of the most enticing tax incentives British companies have seen.   In short, when you buy certain new equipment (which includes computers, servers and more). You can claim 130% capital allowance.

What does the Super Deduction mean?

This means, that if you spend £1000 on a new business computer, this would reduce your business’s tax bill as if you had spent £1300.  As stated on gov.uk:  The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. Read more about super deductions on the gov.uk website here.

When is the cut-off for tech Super Deduction?

The cut-off, as stated by British Governement for the super-deductions is the 31st of March 2023. This means British businesses have a limited amount of time to take advantage of this offer and invest in their IT Infrastructure.

Should you take advantage of the Super Deduction

If you are a business of any size, the answer is a most likely YES.  With waiting times for technology showing no signs of reducing, now is the best time to place your order for the new infrastructure upgrade your business has been waiting for.   Chat to an expert at ITC today.

Learn more about Super-Deductions

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If you want new computers, now is the time to invest.

As an IT Support provider, we’re well aware of the currenty issues in hardware availability. Due to the pandemic, hardware supplies are still to recover. It’s  tough to get hold of certain  computers and components.

You should think ahead about what new technology your company may require in the near future. That way we can assist you in planning and placing advance orders for new technology. If you see any potential need to buy new hardware within the next two years, take action now and take advantage of super-deduction.

More infomation about Super Deduction

We’ve created a little repository of commonly asked questions and their answers.  If you have any hesitations or questions, please get in touch. Our team is knowledgeable and understand every faucet of this topic!

What is eligable for Super Deduction Capital Allowences?

Gov.uk has stated that all plant and machinery assets are eligable for super deductions. Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowances.

What assets are 'plant and machinery'?

There is no exhaustive list of plant and machinery assets as the kinds of assets that qualify for super deductions are vast.  Here are a list of some, but not limited to!

Computer equipment and servers
Tractors, lorries, vans

Ladders, drills, cranes

Office chairs and desks,

Electric vehicle charge points

Refrigeration units

Compressors

Foundry equipment

Can I make a super-deduction claim if I’m a sole trader?

Unfortunately Super-Deduction Allowance doesn’t apply to sole traders or partnerships.

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