Recently the UK government announced super-deduction as part of their 2021 budget. Super-deduction has been introduced for expenditure incurred from 1 April 2021 until the end of March 2023. UK companies can claim 130% capital allowances on qualifying plant and machinery purchases. This includes machinery such as wide-format and flatbed printers. Under the super-deduction for every pound, a business invests their taxes are cut by up to 25p.
Customers purchasing a machine from YPS for a VAT registered businesses will receive a reduction on their corporation tax bill in the following April. Other savings, such as Mimaki offers can be used in conjunction with super-deduction.
We’ve put some examples together to help explain the savings.
Example 1
If the customer purchased a Mimaki CJV150-160 for £10,995, this is including the latest Mimaki offer of a £3,000 discount on the machine, 2 years warranty, ink included & a free Apple Watch SE. (This offer ends at 12 pm 12.6.21)
The customer would purchase the machine for £10,995 and would receive a £2,715.77 reduction on their company corporation tax bill in April.
The maths explained
Price of machine £10,995
Multiply 10995 by 130% = 14293.5
19% (rate of cooperation tax) of 14293.5 = 2715.77
£2,715.77 Reduction on the company tax bill
Cost of the machine after the tax reduction £8,279.23 (+VAT)
Example 2
If the customer purchased a Roland DG TrueVIS SG2-640 for £15,799, they would pay this initially to YPS and would receive a £3,902.35 reduction on their company corporation tax bill in April.
The maths explained
Price of the machine £15799
Multiply 15799 by 130% = 20538.7
19% (rate of cooperation tax) of 20538.7 = 3902.35
£3,902.35 Reduction on the company tax bill
Cost of the machine after the tax reduction £11,896.6 (+VAT)
For further understanding regarding super deduction take a look at the GOV.UK page https://www.gov.uk/guidance/super-deduction
If you would like to know how the super-deduction can apply to your YPS purchase, contact us via email at info@yourprintspecialists.co.uk or give us a call on 0191 256 6889.