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The 130% Super-deduction helps UK businesses to invest in their future and improve their competitive advantage.

Now is the time to invest in your future

Mark Lightfoot, Chess' CEO, summarises what the new "130% super-deduction" mean for UK businesses and organisations. In this article, he covers: 

The last 12 months have redefined what 'being at work' means for almost all of us. Most of us have moved from sitting in an office environment alongside our colleagues to working from home. We interact with others through technology and have embraced the digital workplace faster than we would have without the impetus enforced from Covid-19.

Prior to the beginning of the pandemic, the UK saw the worst slowdown in productivity since the Industrial Revolution. While some blamed austerity and the 2008 financial crisis, others focused on BREXIT. At the beginning of 2020, before the outbreak, experts recommended that the key to accelerating growth is an investment in new technology, infrastructure, software and training.

Today we realise working will never be the same again. The flexibility we have experienced in the last year is a benefit we wish to continue, and why wouldn't we, when 88% of people feel more productive in working in this new modern way?

Chess committed early to this new "work from anywhere" model. We have invested in our infrastructure and our equipment to ensure that we can work flexibly and effectively. We overcame any concerns about the reliability of connectivity, the security of data and systems, and the ability to collaborate between us. We have already shared this journey with our customers, guiding them through the changes required, albeit we recognise many businesses are yet to commit to this change, despite the undeniable truth that this new way of working is where we are all heading.

The great news from the March 2021 Budget is that our government has encouraged all businesses to invest in their future and increase productivity growth by introducing the '130% super-deduction' for plant and machinery purchases. Between April 1 2021 and March 31 2023, all new purchases of main rate plant and machinery will qualify for the super-deduction of 130% capital allowance against your taxable income. What that means is for every £100 spent on plant and machinery, you will reduce your tax bill by £25. The definition of plant and machinery is broad, but it includes computer equipment, servers, and software - the core elements you need to ensure your processes are effective, reliable and future proof.

At Chess, not only can we help you make this journey, but we can also provide cash flow management through our hardware leasing solutions, which also qualify for the new super-deduction allowance. We see the benefits of our new way of working each day, and it gives us great pleasure to see our customers experience the same and assist you in optimising your cash flows. Chess offers the complete set of solutions to help you transition to the modern workplace, coupled with the most passionate and knowledgeable people to help you adapt and grow in this new environment. There has never been a better time to invest in your future and become more productive.

About the author

Mark Lightfoot

Mark Lightfoot, Chief Financial Officer, joined Chess as financial director in 2008. Mark drives outstanding performance across his team, ensuring great financial control, and has a proven track record in building external relationships and securing financial support as we continue our growth journey

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