Government Incentives To Support Office Refurbishment

Government incentives to support office refurbishment

In the current financial climate, most businesses are looking for ways to gain maximum ROI in their investments and so it’s important to find ways to financially benefit by any means possible. This is especially pertinent if you’re planning an office refurbishment or workplace fit-out in 2022, however, there are a number of Government backed schemes that may be beneficial for your business and worth further exploration.  Below we highlight several such schemes and recommend further reading on the relevant Government websites to see if they may be of assistance to your business.

ENERGY CAPITAL ALLOWANCE SCHEME

The Government want to encourage the use of more energy-efficient items, so with that being said they have put together a scheme where you can claim a reduction in tax on your capital allowances, if you purchase low, zero carbon or energy efficient technology for your business.

The items that are included on the ETPL (Energy Technology Product List) that qualify for claim under the current scheme include:

  • Boilers
  • Pipework insulation
  • Lighting and controls
  • Hand air dryers
  • Combined heat and power sources
  • Warm air heaters
  • Solar panels
  • Office chairs and desks
  • Refrigeration units
  • Computer equipment and servers

This particular scheme allows your business to claim back 100% of the cost for the aforementioned list of equipment against taxable profits in the first year.

SUPER DEDUCTION TAX BREAK (SDTB)

Another great scheme worth taking advantage of is the SDTB which allows businesses, until 31st March 2023, a 130% first-year capital allowance for the purchase of new equipment, plant and machinery assets.

Ultimately allowing businesses to reduce their tax bill by up to 25 pence on every £1 that has been invested.

These particular allowances are designed to run alongside the ongoing Annual Investment Allowance, which currently allows for a 100% deduction of the purchase price on new plant and machinery assets from taxable profits in the first tax year of purchase.

However there is a catch and unfortunately partnerships and sole traders cannot qualify for this scheme and this also counts for businesses who do not currently pay corporation tax.

LANDFILL TAX SAVINGS

Although not a saving initiative initiated by the Government, significant costs can be saved when you recycle more and more with the Landfill Tax Savings.

Currently, the rate for putting your waste into landfill is £69.70 per tonne, and if you are sending large amounts to landfill, this can very quickly add up and cause you huge costs, so by reducing your waste in your office fit out or refurbishment you cannot only help the planet but save much more money to spend on your furnishing budgets.

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