Only One In Eight Business Owners ‘Aware Of Super-Deduction Tax Break’ – Ts Partners

[Liz Seyi]

As a business owner, you will naturally want to make the most of all available resources and sources of support to better your firm’s survival and growth prospects. That’s just one reason why you might be looking to draw upon the services of a chartered tax adviser in Newton Abbot, Plymouth, or Wellington, such as a member of our team.
However, with a recent story by The Manufacturer reporting that a mere one in eight businesses knows about the UK Government’s super-deduction tax break, we thought we would go into greater detail about what it is and how it works.
What is the super-deduction tax relief?
The super-deduction tax break became available in April 2021. It was introduced as a means to help stimulate UK business investment, which was already low even before the coronavirus pandemic, but dropped further – by 11.6% – between the third quarter of 2019 and the same period in 2020.
The tax break was designed to give businesses an incentive to make further investments in machinery and tools.
The tax relief runs until 31st March 2023, but many firms are still unaware that it exists. Under the tax relief, businesses can claim a 130% capital allowance on qualifying plant and machinery investments.
Another benefit is potentially getting a 50% first-year allowance (FYA) for qualifying special rate assets. The tax break also allows businesses to cut their taxes by up to 25p for every £1 they invest.
What types of assets qualify?
If you have been reading the above, thinking there can’t be many assets that would qualify, you would be wrong. According to the Government, many assets could qualify for the super-deduction tax break or the 50% FYA, such as:
• Ladders
• Office chairs and desks
• Compressors
• Foundry Equipment
• Solar panels
• Tractors, lorries, and vans
• Electric vehicle charging points
The above is not an exhaustive list of the assets that could allow your firm to take advantage of the super-deduction tax break. Further information about the essentials of the scheme can be found on the GOV.UK website.
Act early to make the most of this tax break
If the super-deduction tax relief seems to be of potential relevance to your business, we urge you to move fast to take advantage of it. The Manufacturer also reported that some firms have had to wait for as long as three months for the delivery of machinery – which in turn, could mean a longer wait for those wishing to realise the cost-saving benefits of this initiative.
We can be by your side to help through times of uncertainty
There can be no doubt that the super-deduction tax break will be a good way for many companies to help themselves ‘bounce back’ from the pandemic and the continued uncertain economy.
To tap into this scheme, you should check if the equipment you need is eligible and follow up on this as soon as possible. In the meantime, it’s easy toreach out to TS Partners for the services of a chartered tax adviser in Newton Abbot, Wellington, or Plymouth, who will be able to help ensure your firm is firmly placed to take on the challenge presented by the current economic turbulence.
chartered tax adviser in Newton Abbot,