In our digital-first world, a high-performing IT system is essential for commercial success and the government’s full expensing scheme can help you invest in your IT infrastructure for less.
Full expensing allows you to deduct the full cost of eligible IT equipment from your corporate tax bill during the first year of purchase. This means you can invest in the latest software and technology to elevate your business without having to pay more tax on the purchases.
For example: If you spend £100,000 on qualifying IT software and computer equipment, full expensing will allow you to claim a £25,000 saving on your tax bill (based on the current corporate tax rate).
What are the benefits of investing in your IT?
- Improve your efficiency – IT can improve efficiency across your company, from automating tasks and streamlining processes to strengthening communication and collaboration.
- Stay competitive – Continually reviewing and optimising your company’s IT systems, as well as taking a strategic approach to IT, can help you stay competitive in your industry.
- Drive business growth – By increasing operational efficiency and enhancing your service offering, new technology can attract new customers and help you grow your business.
What items qualify for full expensing?
You may be able to claim full expensing on a wide range of IT software and computer equipment, including:
- Computer hardware – Including desktops, laptops, tablets, servers and other devices used in your business operations.
- Supporting equipment – This could cover printers, scanners, routers, switches and other items that support your IT systems.
- Cloud computing services – Subscriptions to cloud software and hosting services.
- Data storage and security – IT solutions related to data storage, backup and security. This covers software and hardware.
- Infrastructure components – Any equipment that forms your IT infrastructure. For example, network equipment and firewalls.
- IT training and development – Costs of training your staff on how to use software and hardware.
- IT consulting services – Consulting a specialist IT provider, like Infuse Technology, for planning, implementing and maintaining your systems.
Software and software development can be subject to different rules and tax treatments but may still be eligible. For full details of eligible equipment, get in touch to speak to one of our IT experts.
How Infuse Technology can help
As a leading IT solutions and consultancy provider, we can help you decide where to invest your money to deliver the best value for your company. Your IT investments should support your business objectives and we can make sure you choose the right systems for your needs.
Contact us to schedule a free consultation and discuss your business needs with our IT experts.
We recommend talking to a capital allowances specialist before submitting a full expenses claim. The capital allowances team at our group company PKF Smith Cooper can support you with this process.