GOVERNMENT INCENTIVE TO SAVE MONEY ON NEW EQUIPMENT
- What is it?
- How it applies to commercial dishwashers, glasswashers and ice makers
- Example of savings on dishwasher/glasswasher
- Example of savings on a new kitchen
A government incentive to help businesses to grow and move forward.
Offers 130% first-year relief on qualifying investments from April 1 2021 until March 31 2023.
That equates to 25p off company tax bills for every £1 spent on plant and machinery.
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 ice makers 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.
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.
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.