Can you take advantage of the new super deduction tax scheme?

Talking about tax is something best left to accountants. It’s a minefield that can often cause much confusion. However, in April, the chancellor announced an exciting new policy, which we think cleaning and FM businesses really need to hear about – the super deduction scheme.

Under the scheme, companies can claim 130% capital allowances on qualifying plant and machinery investments made between 1st April 2021 and 31st March 2023. This means that businesses can cut their tax bill by up to 25p for every £1 they spend, making an investment in new equipment much more attractive.  Any UK limited business that is subject to corporation tax and intends to keep the newly purchased machinery is eligible.

The policy has been introduced to encourage investment and promote UK industrial recovery from the pandemic and is an initiative that we hope will provide a boost for the cleaning and FM industry. We know that while some businesses have thrived over the past year, there have been others struggling, unable to afford the new machinery that they require. This super-deduction tax relief should help make these assets much more affordable.

What equipment qualifies for this scheme?

According to HMRC, this scheme applies to brand new plant and machinery, making it an ideal investment for cleaning and FM businesses. We offer a range of capital equipment that is perfect for use in a range of sectors such as hospitality, healthcare, education, leisure, retail and many more. Below are the types of equipment that may qualify:

This policy really does make it an excellent time to upgrade or buy new machinery required for business purposes. However, we encourage anybody wishing to take advantage to consult their accountant for advice to confirm that their intended purchase qualifies. For more information about the scheme, visit HMRC guidance.

For more information or advice about Jangro equipment and supplies, please call our friendly distributors on 01204 795 955 or visit Jangro.net.