We’re encouraging all our customers to make the most of the government’s new Super Deduction scheme. Its purpose is to encourage companies to invest in new plant, equipment and machinery that will help them grow their businesses following the devastation of the pandemic. Quite simply, it benefits anybody looking to acquire brand new equipment. As long as you operate as a limited company, you’re eligible*.
What is it?
It’s a government incentive to help businesses to grow and move forward. Essentially, it offers 130% first-year relief on qualifying investments from April 1 2021 until March 31 2023.
How it applies to catering equipment
Of course, Super Deduction applies to all sorts of products. However, we’re focusing on what might benefit our customers - commercial dishwashers, commercial glasswashers and commercial kitchens! It only applies to new equipment, not second hand, and that could be anything from a single commercial dishwasher or glasswasher to a complete, superbly specified, new commercial kitchen. Whether the purchase is outright or on a hire purchase basis, Super Deduction will definitely help you to save a substantial amount of money.
An example of savings on a single item of equipment
A bar spends £4000 on a new commercial dishwasher and decides to claim the super-deduction. This will mean the company can deduct £5,200 (130% of the initial investment) in computing its taxable profits.
Deducting £5,200 from taxable profits could save the company up to 19% of that – or £988 – on its corporation tax bill.
An example of savings on a new kitchen
A restaurant spends £150,000 on a brand new commercial kitchen and decides to claim the super-deduction. This will mean the company can deduct £195,000 (130% of the initial investment) in computing its taxable profits.
Deducting £195,000 from taxable profits could save the company up to 19% of that – or £37,050 – on its corporation tax bill.
If you think you could benefit from this scheme, regardless of whether you’re considering a single item of kit or a complete kitchen or bar refit, please do get in touch.
*We strongly recommend that you qualify your eligibility for Super Deduction with your accountant or financial advisor prior to purchasing.