130% capital allowance on new equipment.

You can claim 130% capital allowance on certain new equipment – including computers and servers – between 1st April 2021 and 31st March 2022

What does this mean for you?

If you spend £1,000 on IT equipment, you can reduce your corporation tax bill as if you spent £1,300.

When you buy certain new equipment (including computers) you can claim 130% capital allowance.

What that means is that you can write off more than the cost of the purchase on your corporation tax bill.

For example, if you spend £1,000 on computer equipment, it’ll reduce your corporation tax bill as if you had spent £1,300.

It was designed to encourage you to invest in your business, your accountant should be fully aware of it  but you can read the HMRC summary here

If you want new computers in the next few years, we recommend you act now

Supplies of hardware are still being disrupted due to the pandemic and the global silicon chip shortages. It can still be difficult to get hold of certain specifications or pieces of equipment.

You really should think ahead about what new hardware your business could need in the next few years – this could be replacing your existing servers with more efficient models to reduce your energy costs or swapping desktop devices for portables allowing your staff to work from anywhere more effectively.

That way we can help you plan what you need and put in advance orders on new technology for you.

If you can see any need at all to purchase new hardware in the next two years, either to replace existing hardware or to add new services – you should act now, and benefit from super-deduction. Arrange an appointment right away with one of our consultants for a free consultation on your IT spend requirements.

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