What is Full Expensing?
Starting in April 2023 the Government announced its replacement for the Super Deduction Capital allowances Scheme, now known as "Full Expensing"
Full expensing allows companies to write off the cost of a new investment in one go.
Under full expensing, for every pound a company invests, their taxes are cut by up to 25p.
What Assets are Covered Under the Scheme?
Tangible capital assets, not land/structures/buildings, that are used in the course of a business are considered plant and machinery.
Some examples of Plant & machinery that may qualify for full expensing:
Vehicles such as Trucks, vans and tractors (not inc cars)
Office equipment.
Machines such as computers, printers, lathes and planers.
Warehousing equipment such as forklift trucks, pallet trucks, shelving and stackers.
Construction equipment such as excavators, compactors, and bulldozers.
Designed to encourage investment as the UK continues its recovery from the pandemic the scheme looks to encourage investment and growth in the UK economy. Every part of the economy was affected by the pandemic and by using the scheme the Government hopes the scheme will continue to drive GDP figures up whilst ensuring that the Capital allowances remain amongst the most competitive in the world.
How Can We Help?
The Full expensing scheme can be applied to new assets purchased under Hire Purchase agreements. Spreading the cost of Asset Finance with monthly payments combined with this new scheme offers both a cashflow and tax advantage to your business, helping investment and growth.
With competitive rates, a diverse funding panel, low or no deposit agreements and our straightforward service, we can ensure your business is positioned to take advantage of this scheme.
Call 0161 456 4242 for further information on how to make your next new purchase work even better for your business.
Comentarios