What is the super deduction?

Businesses can claim 130% first year relief on qualifying plant and machinery bought between 1st April 2021 and 31st March 2023. Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p. The government announced this as part of the 2021 Budget in March, in the hope that the scheme will encourage business investment and stimulate economic growth. The super deduction scheme is only available to Limited Companies. Unfortunately sole traders cannot benefit. To give an example of the available savings, if you spend £100,000, the corporation tax deduction will be £130,000. You will save 19% on £130,000, which is £24,700.

Last week, the Chancellor delivered one of the most significant budgets in recent memory. Before the budget was released, the Government were keen to stress that some tax rises would be needed to help pay for the coronavirus response.

Many small firms will avoid one of the biggest tax hikes, but how should self-employed people, limited company directors and other small business owners be looking to respond to the budget? We’ll look at the most important changes and how they could affect your business below.

Coronavirus disruption contributed to an uptick in the number of new business registrations in 2020 and experts predict more of the same this year.

Obviously money isn’t everything when it comes to entrepreneurship. Many people start businesses because they want more freedom or independence or because they are passionate about a side-project or product, but if your new business venture doesn’t make any money, then it’s not going to be sustainable.

So what kinds of businesses are going to make you money? Here is our list of businesses with the biggest earning potential.

Registering for VAT can feel scary for businesses, but it is an essential part of growth. In this brief introduction to the tax, we give you all the most important information to help you grow more comfortable with the tax.