So today I wanted to talk to you about the super-deduction. You might’ve heard about it in the last Budget, and it sounds really exciting, although the bad news is, it’s not as exciting as it sounds.
So, before the super-deduction existed, what actually used to happen is let’s say you bought a laptop for 1,000 pounds and you were making a profit of 10,000 before you bought that laptop. That laptop would go through your books at 1,000 pounds, lower your profit from 10,000 to 9,000 pounds, and then you would end up paying tax on that 9,000 pounds. What the super-deduction now lets you do is instead of putting that laptop through at 1,000, it actually lets you put that laptop through at 1,300 pounds which means it lowers your taxable profit to 8,700, and you pay less tax on that lower amount. So, the tax on that lower amount isn’t substantially less than what it was before, so my opinion on it is that super-deduction isn’t really a game-changer, but it is a nice little perk. But what it really means is that if you’re thinking of making any decisions, don’t let the super-deduction be part of those decisions. What you should really be doing is thinking about, does my business need this asset? Is this asset going to generate value for my business? And then make the decision based on that, rather than this very small tax saving the government’s giving you.
While I am here, I’d like to tell you about our signature system, signature triple-A system called Apex. What it’s designed to do is get your business working for you, rather than the other way around, so if you want to find out a bit more about our signature system, then get in touch with us, book yourself in for a game-plan session and we’ll explain exactly how it works. All right, have a great day, thanks.
