With office furniture having a massive impact on the comfort experienced at work, getting the right items is vital in allowing people to settle back in. This is something that has been recognised by the UK Government in the 2021 Budget.
From the 1st of April 2021 until the 31st of March 2023, limited companies can claim a 130% ‘super deduction capital allowance’ which effectively reduces their tax bills by 24.7% of the amount they have invested in furniture. With this representing just under a quarter-saving, many forward-thinking firms have already teamed up with furniture providers to take the government up on the offer. So, let us take a closer look.
Super Deduction Capital Allowance For Office Furniture
A capital allowance allows taxpayers to write off the costs of certain capital assets against their taxable income. This is taking the place of accounting depreciation, which is not normally tax-deductible, meaning that businesses can now deduct capital allowances when calculating their taxable profits.
Put simply, for every pound the company invests, their taxes are cut up by 25p.
There are two main types of capital allowances. These are ‘Writing Down Allowances’ (WDAs) for plant and machinery, and Structures and Buildings Allowances (SBAs), which cover the construction and renovation of non-residential structures and buildings.
Businesses can claim a 130% super-deduction (as well as a 50% first-year allowance) on office furniture as a WDA; creating an opening for firms to get great deals on new items.
Even if the business isn’t in immediate need of new furniture, a capital allowance provides an opportunity for them to source high-quality items, effectively futureproofing their workplaces and upgrading them for a fraction of the cost.
Here at Oaktree Interiors, we have many years of experience in working with businesses to source furniture – not just pieces for purely functional use, but also items that fit the aesthetic expectations of businesses and their employees too.
So, if you’re interested in learning more about the super deduction capital allowance, why not get in touch with our team today?
Workplace Furniture Services By Oaktree Interiors
We understand that every business is different, which is why we’re confident that through our vast experience, we can find the right items to fit any office environment. We purchase furniture directly from the manufacturers, which means that we avoid extra costs that may be put on by any third parties – more savings that we pass on to our clients.
No matter what your company is looking to achieve with its office furniture, we have the right solution for you. We can offer you any elements you may require, including specialist ergonomic chairs and desks and even dividers and panels that will match your corporate colours and your office’s specific aesthetics.
To find out more, please do not hesitate to give us a call at 0345 2186955 or send any email enquiries to email@example.com.