Tax savings for your project
Tax can be a big consideration for businesses, and this is not always for good reasons. That is why is it is important to know when savings can be made and how they could help fund your next refurbishment or fit out.
From April 1, 2021, company spending on what is considered to be ‘qualifying’ pieces of plant and machinery could potentially save thousands of pounds worth of tax. The savings being offered by the government will last until March 31, 2023, and will allow businesses to take £1.30 off their taxable profit for every £1 that they spend on qualifying plant and machinery. With this in mind, there may never been a better time to undertake your refurbishment project.
What could this mean for your business?
This means that your business could deduct up to 25p from your tax bill for each £1 of expenditure on ‘qualifying’ items. This may not seem like huge savings at first, but if you apply it to larger purchases, you’ll clearly see how beneficial these ‘super-deductions’ could be.
What is ‘qualifying’ plant and machinery?
Whether your business can make use of these potential savings will depend on the type of plant and machinery you need to invest in. Applicable items which you may be considering replacing or fitting during a refurbishment project include:
Integral features – Electrical and lighting systems, water systems, air cooling and air conditioning, heating systems and lifts.
Fixtures – New fitted kitchens and bathrooms could all lead to tax savings, along with CCTV systems and fire alarms.
Furniture – Invest money on exactly the right furniture for your workspace and save money on your tax bill in the process.
Building alterations – Save on alterations needed to install plant and machinery.
Reap the benefits of tax savings
Many refit projects will include expenditure on qualifying items, and we are on-hand to assist every step of the way. To learn more, contact our team today.
