Rishi Sunak announced in his Spring Budget on 3rd March that companies can claim 130% first year relief on capital allowances with qualifying plant and machinery investments. Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
This increased relief will be for qualifying expenditures from 1st April 2021 until 31st March 2023.
We are all aware that the population has never used contactless so much as in the past 18 months - so what better time to invest in a contactless payment rollout.
Make your inventory post covid ready.
This unique tax relief is to spur the country to invest in the future after a year of low investment. It makes it obvious to bring planned investments forward - and a key to this is the upgrading from coin mechanisms to unattended contactless products.
This capital allowances benefit provides business a tax break of writing off business investments against taxable income. Instead of adding back depreciation they can now deduct capital allowances. See examples of the capital assets claimable taken from the Treasury website:
“There is not an exhaustive list of plant and machinery assets. The kinds of assets which may qualify for either the super-deduction or the 50% FYA include, but are not limited to:
- Solar panels
- Computer equipment and servers
- Tractors, lorries, vans
- Ladders, drills, cranes
- Office chairs and desks,
- Electric vehicle charge points
- Refrigeration units
- Foundry equipment “
Seek full assistance from your company tax accountant - but this useful tax break should provide ample opportunity to invest in upgrading your machinery to accept contactless payment technology ASAP.
Ring us now to start assessing your equipment rollout opportunities and make the most of this unique government windfall.