Super deduction - Time for new equipment?

[Lance]

I think general consensus is the 130% super deduction is mainly aimed at counteracting incentive for big businesses to delay big capital investments. With the main CT rate going up from 19% to 25% in a couple of years, anyone expecting that jump to hit them considering big capital investments might be tempted to delay a couple of years, so the expenditure saves 25% CT rather than 19%. The 130% deduction counteracts that. The fact small businesses can benefit from it too I think is just a side effect that the government don't care about. I imagine the 130% super deduction will disappear at the same time the CT rate goes up.

It's due to end 2023. So yes. Good call.

[jamesbrown]

I don't understand why a discount that lasts for 2 years, would have any bearing on a buying decision for a company device.
If you don't need one then don't buy one.
If you don't need one now it's quite conceivable you might in 2 years so why rush now?

And in any case, if you need one, this extra discount surely isn't going to be anything other than a nice bonus. Not a serious decision input.

I don't understand why anyone who is planning to upgrade their company's fixed assets would not plan to do so during the super-deduction period, regardless of business size. It really isn't that hard. The point of the super-deduction is to encourage spending on fixed assets sooner rather than later and it is obviously a decision input. Purchasing fixed assets for no good reason or that aren't required until 2078 is obviously a straw man.

[Lance]

I don't understand why anyone who is planning to upgrade their company's fixed assets would not plan to do so during the super-deduction period, regardless of business size. It really isn't that hard. The point of the super-deduction is to encourage spending on fixed assets sooner rather than later and it is obviously a decision input. Purchasing fixed assets for no good reason or that aren't required until 2078 is obviously a straw man.

I agree completely. But the whole premise of the thread is to buy a super-expensive device, based on a new scheme, launched TODAY, but without any clear legislation to back it up.
A laptop is really not the target asset of this really.
It's as Maslins says. With the bump in CT coming, you don't want to stifle demand by forcing companies to delay their fixed asset purchases as a result of the CT change. It's quite a shrewd idea really.

[jamesbrown]

I agree completely. But the whole premise of the thread is to buy a super-expensive device, based on a new scheme, launched TODAY, but without any clear legislation to back it up.
A laptop is really not the target asset of this really.
It's as Maslins says. With the bump in CT coming, you don't want to stifle demand by forcing companies to delay their fixed asset purchases as a result of the CT change. It's quite a shrewd idea really.

I didn't read it that way (yes, a glaring error about the saving, but that isn't uncommon). What Maslin's said was explicitly part of the announcement so, yeah, I agree with that. The whole design is based around consumption now in order to kickstart the recovery. Whether it really ends when the CT increase kicks in, I personally doubt it - Sunak is a highly political creature and he's created a political opportunity for himself, "Yeah CT is going up now, but look! A rabbit!". Either way, that intention was clear in the announcement.

I do not plan to second-guess the scheme. Obviously, we await the legislation, but I highly doubt that particular (e.g., small IT) companies are not being targeted equally because the whole point of the scheme is to increase consumption now.

[northernladuk]

no it's not. It's a discount.

I know that but most people asking these type of questions don't.

[NotAllThere]

...who need a £2k laptop these days?...

Said the management consultant who barely needs a notebook and anything he's written down can be thrown away.

No you're right. £2K isn't enough. Real IT types need one of these: https://www.amazon.co.uk/ASUS-Studio...CKV/ref=sr_1_2 £6599.

[lecyclist]

Great incentive - totally makes up for IR35 and the challenges Brits will have getting Visas to work in EU/EEA.

Although, it does get me thinking about that ALIENWARE AURORA R12 "server" I've had my eye on for some time.

[malvolio]

Said the management consultant who barely needs a notebook and anything he's written down can be thrown away.

No you're right. £2K isn't enough. Real IT types need one of these: https://www.amazon.co.uk/ASUS-Studio...CKV/ref=sr_1_2 £6599.

Several of the things I consulted on managerially required some fairly meaty calculations, usually on Excel spreadsheets running at around 2-3 Gb. Datacentres don't just fall together, nor do £100m pound ITT responses or accurate service cost calculations.

I managed all I ever needed on an ASUS Zenbook costing a shade under £600 in 2010 and thought that was an extravagance. It was easily faster than the equivalent Mac (at around £1400) and had better graphics. Still got it, still works.

So yah boo to you...

[PerfectStorm]

Sure, let's spend a silly amount of money (who need a £2k laptop these days?)

I will say this - my £4k laptop ? is still going very well 5 years after purchasing.

Sometimes it makes sense to get something decent.

[NotAllThere]

Several of the things I consulted on managerially required some fairly meaty calculations, usually on Excel spreadsheets running at around 2-3 Gb.

Oooh, 'ark at 'er. I'm so impressed...

I reminded of when I interfaced a VB system to an ERP system. The programmer proudly exclaimed that his database was 1GB in size. In the ERP ledger, just the General Ledger was 32GB. That was 20 years ago.