How the super deduction can help your business thrive
03 June 2021
The super deductions announced by the chancellor Rishi Sunak means that now is the time for businesses to invest in growth. But what is it and how can you use it for your business?
The super deductions was one of the most striking announcements from the Chancellor’s spring Budget and the scheme allowed businesses to reduce their tax bill by 130% when investing in new plant and machinery to help their business grow. This is a huge increase from the 18% relief that these assets would usually qualify for. Your business is eligible for the scheme as long as you invest in qualifying assets between no and 31st March 2023.
Those qualifying assets include:
– Essential items for office refurbishment ranging from chairs and desks to computer equipment and servers
– Commercial vehicles including tractors, lorries and vans
– Key construction equipment including cranes, ladders and drills
– Assets to drive your business sustainability goals including solar panels and EV charging points
The Super deduction enables businesses to slash their taxes by up to 25p for every £1 invested.
For example, if you are a business in the manufacturing sector and want to invest £400,000 in your delivery fleet to be able to get more of your products to a wider customers base, you will be able to claim £520,000 capital allowance. This is a massive saving and when you consider the impact that the delivery could have on the growth of the business its real a no-brainer
And it’s not just vehicles and machinery that you can invest in. As we emerge from lockdown, the next challenge for businesses is to adapt to new hybrid ways of working which ultimately means investing in your workspace. Lots of businesses will have employees balancing working from home and coming into the office, which means that the office space needs to be more flexible which will mean new equipment. The savings you can make through the super deduction will ensure that new ways of working ares successful for yours business
As we look towards the future for the UK economy, it is vital that our SMEs are supported in every way possible to grow their business. The super deduction represents a recognition by Government that businesses need to be encouraged to invest in the future. As with any investment in the future of your business, you need a lender which is able to quickly understand your needs and be able to provide flexible financing solutions which is why we are proud of our role as an independent lender in supporting the recovery and growth of the UK’s vibrant SME community
FUNDING THESE ASSETS
When it comes to acquiring the assets, you need to help your business reach the next step, asset finance provides a flexible and efficient funding option and at White Oak we are proud to have a dedicated team of asset finance consultants to help you get the answers you need fast. You can tailor your asset finance to specific cash flow needs of your business and there is an attractive offer for a whole host of businesses from holiday parks to the agricultural sector. Recently, we’ve supported our longstanding client A.P. Waters with asset-based lending solutions, allowing them to invest in their business and explore new markets and opportunities.
At White Oak we have vast experience in providing asset finance options to SMEs from a range of sectors including construction and manufacturing. If you want to find out more about how our asset finance options can work for you visit our asset finance product page.