Procure Direct, a Lincolnshire lighting company, is urging businesses to take advantage of the Government’s Super-deduction scheme, an initiative which is set to offer significant tax savings.
Spencer Coffin, director of Procure Direct, specialises in reducing organisations’ utility bills by installing LED lighting, Solar PV and Far Infrared heating, and wants business owners to capitalise on the Super-deduction scheme.
Announced on March 3 and coming into operation tomorrow, April 1, the Super-deduction is a new 130% first-year capital allowance for qualifying plant and machinery assets, such as LED lighting.
According to Gov.uk: “The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the world’s most competitive.”
LED lighting is classed as integral features which fall under the plant & machinery category for capital allowances purposes.
Under the proposal, HMRC says that investments in plant and machinery will receive tax relief of 130% from April 2021 to April 2023, which includes integral features.
As such LED lighting qualifies as an integral feature for capital allowance purposes, it will be eligible for super deduction capital allowances.
Spencer said: “There has never been a better time to invest in LED lighting.
“LED is incredibly cost-effective without this incentive. The Super-deduction makes it a no-brainer.”
“Not only will a company be reducing their corporation tax, but they will also be reducing their utility bills by as much as 70%!”
To find out more about LED lighting and the Super-Deduction scheme, email [email protected]