• 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.

Super deduction - Time for new equipment?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Super deduction - Time for new equipment?

    Hello,

    Sunak just announced the super deduction plan:
    https://twitter.com/RishiSunak/statu...27900883320834

    https://www.gov.uk/guidance/super-deduction

    So 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.

    Are you planning to take advantage of this scheme? And what you planning to buy if so?


    Note for the deduction:
    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.
    Last edited by cwah; 1 April 2021, 12:27.

    #2
    Considering computer equipment and servers are included as plant and machinery, that's rather interesting. I didn't think that category of asset would be covered.

    You might not get away with the phone purchase.

    Comment


      #3
      Bearing in mind you are asking a bunch of contractors, you thought about passing this one past your accountant?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        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.

        Comment


          #5
          Yes, sure, it would be rude not to purchase an exorbitantly priced workstation.

          Comment


            #6
            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.....
            Blog? What blog...?

            Comment


              #7
              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.

              Comment


                #8
                Originally posted by JHamp82 View Post
                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.
                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.pdf
                Last edited by cwah; 1 April 2021, 10:53.

                Comment


                  #9
                  Originally posted by malvolio View Post
                  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.....
                  So it's OK to "screw some extra taxes out of HMG" if you're a "BigCo"?

                  ( 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.

                  Comment


                    #10
                    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 include
                    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).
                    See You Next Tuesday

                    Comment

                    Working...
                    X