The super-deduction has been described as the government’s biggest giveaway ever. Combined with the wealth of financial products on the market, could the next few months be a game changer for your business?
If the last two years have felt like a struggle for your business, growth may be the last thing on your mind: survival first, you could say, let’s think about growth when we are back to normal.
But waiting for a ‘normal’ that may never come will mean you have left it too late.
The Chancellor of the Exchequer has announced a ‘super-deduction’ – effectively, this is a massive 130 percent tax relief on equipment bought for your business (exclusions apply). For a full explanation of the super-deduction and which purchases qualify, read our plain-English guide here.
The super-deduction is the latest in a series of schemes intended to get British businesses back on their feet and looking forward, not back.
Businesses making purchases now will find they are able to get a lot of bang for their buck: machinery, IT, solar panels, office desk and chairs, electric vehicle charge points and some vehicles are all among the items covered by the super-deduction allowance.
Our simple-to-use super deduction calculator will tell you how much you could claim.
So now is a good time to buy – but how to pay for it?
The market has responded to demand to create a number of financial products that answer the needs of businesses at this moment. There is the BNPP unsecured loan which covers major expenditures of between £1million and £5million. Swoop is currently the only platform on which businesses can apply for this product directly.
Under £1million, there are literally hundreds of options to choose from: from simple overdrafts to invoice finance, working capital loans and asset finance. This confusing world is made more manageable through a simple sign up to Swoop which can match your business need to the right product more quickly than speculative Google searches.
Even businesses that have been traditionally wary of getting into debt will find that the chancellor’s generous 130 percent super deduction will offset a lot of those interest repayments. With the competition moving quickly into digital transformation projects, equipment upgrades and fleet electrification (how much money would you save by switching from diesel to sunshine?), mere survival will quickly turn into being left behind.
The next few months represent a crucial window of opportunity for businesses to make a smart decision about their funding. Businesses are in a unique position of being given a firm financial leg-up on realising the future they want to build.
Strike now, or see the competition streak ahead.
Learn more about the super-deduction here.