The last 12 months have been tough on businesses. The uncertainty caused by COVID-19 and lockdowns saw many businesses put investments on hold indefinitely, whilst they waited with baited breath to see how the pandemic impacted the economy. But following the Chancellor's Budget 2021 announcement, the green light has been given to spend, spend, spend, with help from the business equivalent of Eat Out To Help Out.
The Chancellor announced significant changes to Capital Allowances during his Budget 2021 speech, including Super-Deduction, which aims to incentivise the bringing forward of capital investment with tax savings. These new measures aim to encourage an increase in productivity within the UK, which he hopes will make UK businesses more competitive with the rest of the world.
Using Super-Deduction, from 1st April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. This means that under the new super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
So, what could this mean for your business? Well, although software solutions aren't covered under super-deduction, IT hardware is, so it's an ideal time to upgrade. If you're running old, industrial tablets/computers, data capture units or printers, this could be the time to look at changing to newer models. Updating ageing equipment not only reduces down time and costs associated with breakdowns and repairs, it can also help boost productivity, reduce errors and improve customer satisfaction.
If you're looking to upgrade, contact our team on 01200 441977 to arrange a demonstration of the latest data capture and print technology and take advantage of the Super-Deduction scheme. We're looking forward to playing our part in helping the UK businesses come back stronger than ever in 2021!