Originally posted by Lance
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Super deduction - Time for new equipment?
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Originally posted by cwah View PostSo if I buy a new laptop for £2000 and a new phone for £1000 as capital allowance I should be able to deduct 130% corporation tax.
Meaning £3900 deducted from corporation tax.
The gov are going to pay for the assets and give you £900?
HINT: You're wrong.
They will knock £3900 off you profit calculation before CT instead of £3000.See You Next TuesdayComment
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Originally posted by northernladuk View Post
But it's free!!!!!!See You Next TuesdayComment
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Originally posted by JHamp82 View PostIts best speaking to your accountant but it is my understanding the 130% is applied against the taxable CT calculation. So the CT reduction would be £3,900 x 19% reducing CT bill by £741 in this case.See You Next TuesdayComment
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Originally posted by cwah View Post
Yes that is correct. They mentioned it in their example:
• A company incurring £1m of qualifying expenditure decides to claim the super-deduction
• Spending £1m on qualifying investments will mean the company can deduct £1.3m (130% of the initial investment) in computing its taxable profits
• Deducting £1.3m from taxable profits will save the company up to 19% of that – or £247,000 – on its corporation tax bill.
https://assets.publishing.service.go..._factsheet.pdfSee You Next TuesdayComment
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Originally posted by Lance View Post
surely it's better to correct your original, completely incorrect and hyperbolic post?Comment
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Originally posted by malvolio View PostThe OP has just summed up rather well precisely why we have such problems getting our voices heard inside HMRC. Sure, let's spend a silly amount of money (who need a £2k laptop these days?) that we don't have to spend to screw some extra taxes out of HMG because we can...
Grump.....
Just because you can't, as you keep telling us you retired last millenium, doesn't mean no-one else should take advantage.Comment
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Well, I asked my accountant.
He thinks we will be able to claim it, not that it's going to be game-changing but it's better than nothing.Comment
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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.See You Next TuesdayComment
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Originally posted by Lance View PostI 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.Comment
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