Super-Deduction Tax Breaks on Office Furniture - What Is It and Who Qualifies?
What is a super-deduction tax break on office furniture? A new 'super-deduction' tax relief was introduced last year to encourage businesses to invest in productivity-enhancing plant and machinery assets to promote growth and development, helping to make offices more appealing and comfortable places...
As businesses migrate back into their offices, the UK government is working to make this shift more appealing. New super-deduction tax relief was introduced last year to encourage businesses to invest in productivity-enhancing plant and machinery assets to promote growth and development, helping to make offices more appealing and comfortable places to work.
Plant and machinery assets include:
• Computer equipment and servers
• Tractors, lorries, vans
• Ladders, drills, cranes
• Office chairs and desks
• Refrigeration units
If you're planning on growing your business or refurbishing your spaces, this is a really good way to future-proof your workplace and adopt high-quality, durable items which will provide greater benefits for your employees in the short term and the future.
What is a super-deduction tax break on office furniture?
The government's new super-deduction tax break was introduced in the UK in April 2021, with savings set to continue until at least 31st March 2023. This ensures all business's currently eligible for Corporation Tax – and are in profit, will be able to claim 130% super-deduction when buying new and unused office furniture and equipment.
This provides the ideal opportunity for many office-based businesses to save money as they review their workspaces and encourage their teams back into the office. Both practically and aesthetically, office refurbishment can create a positive change throughout your business, increasing productivity, staff morale and also the retention of your staff.
How does it work?
Announced as part of the 2021 Budget, this option gives companies an opportunity to self-invest. This upfront super-deduction will allow companies to reduce their tax bill by up to 25p for every £1 they invest.
Companies who take advantage of the super-deduction tax break will also benefit from a 50% first-year allowance for qualifying special rate (including long life) assets.
What are the benefits of buying new office furniture?
Following on from remote working, investing in new office furniture could be a great way to re-engage and motivate your workforce back into the office. It's also a good time to re-think your existing floor layouts, or even create new spaces for working, holding meetings and break-out areas.
Aston & James are specialists in space planning and office design. We combine great ideas and fresh thinking with a cost-focused approach to create your ideal and unique workspaces. With the super-deduction tax break on office furniture, there's never been a better time to create a fully customised and unique workspace. We are committed to wellness at work and provide a range of ergonomic furniture, and advice to ensure your comfort whilst working is our number one priority.
*The super-deduction is not currently available to sole traders, partnerships or LLP's.
**Source - Super-deduction - GOV.UK (www.gov.uk)
