Super-deduction Tax Relief On Office Furniture For Business
Save money for your business with new office furniture
Now is the perfect time to invest in employee wellness and productivity. To incentivise businesses to invest in new furniture, the Government introduced the 130% Super Deduction from April 2021 to 31st March 2023. This means that businesses can save money when they purchase new desks and chairs for their business.
So, how does the super-deduction tax relief work for office furniture?
Businesses can take advantage of a 130% tax deduction on qualifying purchases in the first year. For example, if a business spends £100,000 on new office furniture, they can reduce their taxable profits by £130,000 in the first year, resulting in a tax saving of £24,700 (19% corporation tax on £130,000). This means that businesses can save up to 24.7p in corporation tax for every £1 of investment in furniture.
What items qualify for the super-deduction tax relief?
Purchases that qualify come under ‘Plant and Machinery’, which include:
- Office furniture including desks, chairs, meeting pods, storage units etc
- Office equipment including computers, laptops, printers, copiers, servers etc
- Warehouse equipment including racking, shelving, forklift trucks, handling equipment
- Factory and manufacturing equipment such as CNC machines, compressors, generators etc
- PV and EV equipment such as solar panels and electric vehicle charging points
- Commercial vehicles including lorries, vans, tractors and pickups
- For specific guidance on items, businesses should consult their accountant.
What are the conditions of the super-deduction tax relief?
To qualify your purchases must be made by a company or organisation that pays corporation tax. Therefore, it is not available to private individuals or partnerships. Also, to benefit from the relief, the company or organisation must have made sufficient profits to set the deduction against. Furthermore, any equipment or items purchased must be new and not second-hand, used, or refurbished. The purchase must be made, or expenditure incurred, between 1st April 2021 and 31st March 2023.
The information provided is our interpretation of the application of the super deduction announced in the March 2021 budget. We strongly recommend that you obtain advice from your accountant or tax advisor for your own specific circumstances. For more information and to check your eligibility please see the Government website: https://www.gov.uk/government/publications/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021
What are the benefits of buying new office furniture?
New furniture for work can improve employee wellbeing and boost morale in the workforce. If you are thinking about improving your team’s workspace, we would love the opportunity to discuss your requirements.
Purchasing a height-adjustable desk for work can significantly boost productivity throughout the workday, read our blog to learn more about the health benefits of a height adjustable desk. Are you in need of an extra-large desktop for working from home? Look no further than the Buro Industrial Desk featuring an 180 x 80cm desktop surface, perfect for accommodating multiple screens and providing ample workspace. Choose from six desktop finishes to find the perfect desk to match your interior aesthetic.The Buro Industrial desk is also available in a corner set up, offering even more space with a desktop spanning 160 x 160cm.
Already have your office desks but want to add a height adjustable option? Then the Standing Desk Convertor is the perfect product for you and your team. Gain the benefits of a standing desk while preserving your ideal workspace, and switch it up without breaking the bank.
In conclusion, the super deduction tax relief for office furniture is the perfect time to invest in your business, and save money!