17 Sep 2021 12:39 PM

You may already be aware of the new Super Deduction as announced by Rishi Sunak in his budget earlier this year. The Super Deduction is already available, as it came in force from April 2021 and it could give you some additional savings on your tax bill.

Why could the Super Deduction suit tech businesses?

It won’t suit everyone, but one sector in particular that could benefit is the technology sector who typically spend a lot of money on technology and equipment that gets replaced every couple of years.

How does the Super Deduction work?

The Super Deduction only applies to the purchase of new items of plant and equipment, which includes computer and office equipment and provides a tax deduction of 130% of the costs, giving a 30% uplift on the total cost for companies.

The relief can save corporation tax at 19% or for many start up tech companies, making R&D tax credits claims and surrendering their losses, it will help to increase the loss available for surrender for a cash payment from HMRC.

When is it available?

The Super Deduction is only available for purchases between 1 April 2021 and 31 March 2023 and therefore if you are thinking about making an investment in equipment for your company, it may benefit your business to do so under the new regime.

Contact us

Should you have any queries about the new relief, how it works or how it could apply to you, please do get in touch.