How Super-deduction tax relief can help UK businesses get COVID ready for less
As COVID restrictions begin to ease, employers are reviewing workspaces and conducting risk assessments in preparation for bringing their teams back to the workplace safely.
The government's new "Super Deduction" announced in the latest budget can give businesses access to significant savings on workspace refurbishments and fit-outs.
Visual impression is the focal point to any business's corporate identity - as well as making your workplace COVID secure, refurbishing the workplace is a great opportunity to affect positive change and improvement in business performance, increase staff productivity, staff morale and staff retention.
What is a Super deduction?
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance.
This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. Investing companies will also benefit from a 50% first-year allowance for qualifying special rate (including long life) assets.
What expenditure qualifies?
The good news is, most of the products related to a workplace refurbishment qualify for the 130% super-deduction, as long as they are new and unused.
Who qualifies?
The super-deduction is available to any business within the charge to corporation tax. It is not currently available to sole-traders, partnerships or LLP's.
How can our industry make the most of this opportunity?
As with any HMRC scheme the devil is in the detail. Many businesses are unaware that they can make savings on their workplace upgrades.
BOSS have teamed up with tax experts at Garbutt and Elliott Chartered Accountants, to provide members with a simple yet accurate representative example of the savings available in a workplace refurbishment.
Hopefully, members can use this information to aid sales of related products and services to businesses throughout the UK.
For further details on the super-deduction scheme please click here to see Garbutt and Elliott's Super-deduction factsheet.
As a reminder, all members have access to the BOSS COVID-Secure Road Map, which provides advice and guidance relevant to any business becoming COVID secure.
It takes you through each step of the journey (1-8) in a clear and easy to follow manner, with additional elements within each step - suitable guidance and templates are listed within each step, along with our recommended actions to be taken.