Originally posted by northernladuk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Super deduction - Time for new equipment?
Collapse
X
-
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.Leave a comment:
-
Originally posted by Lance View Postnot sure I'd go for this just yet on the basis of
until the draft legislation becomes law it would be a really dumb move to buy something you don't need. (actually - it would be a really dumb move to buy something you don't need at ANY TIME).Leave a comment:
-
not sure I'd go for this just yet on the basis of
The kinds of assets which may qualify for either the super-deduction or the 50% FYA includeLeave a comment:
-
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.....
( Ah, it's professional - better delete that insult )
The super-deduction is there to be used and I will be fully participating, bringing forward the purchase of my exorbitantly priced computer equipment to fully benefit from it.
Leave a comment:
-
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.
• 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.pdfLast edited by cwah; 1 April 2021, 10:53.Leave a comment:
-
Its 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.Leave a comment:
-
The 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.....Leave a comment:
-
Yes, sure, it would be rude not to purchase an exorbitantly priced workstation.Leave a comment:
-
I don't need accountant. Sunak himself mentioned the computer equipment as deductible for super deduction. It's in the list here as well:
https://assets.publishing.service.go..._factsheet.pdf
but good thing to check for the phone. Gotta find a list somewhere.Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: