27th Jun 2023

Full Expensing: A New Tax Break for Your Office Revamp

The UK government announced a new tax break for businesses called ‘full expensing’ in their 2023 Spring Budget. It replaces the 130% super deduction tax break and will run until March 2026. Companies can claim 100% capital allowances on plant and machinery investments.

A quick rundown of full expensing

Businesses can now deduct the full cost of new equipment, plant and machinery investments from taxable profits in the year they’re bought. So for every £1 you invest as a company, your taxes are cut by up to 25p.

This can be a significant saving for your business and the perfect time to consider an office revamp if you’re thinking about investing in new equipment. Here are a few things to keep in mind if you’re considering taking advantage of full expensing:

What qualifies?

Full expensing is applied to new plant and machinery investments, this includes equipment like:

• Computers, printers, lathes and planers
• Office furniture such as desks and chairs
• Vehicles such as vans, lorries and tractors (but not cars)
• Some fixtures such as kitchen and bathroom fittings
• Fire alarm systems in non-residential property
• Warehousing equipment
• Tools such as ladders and drills
• Construction equipment

Leased or hired out equipment or assets don’t qualify.

How much can I save?

The amount you can save depends on the cost of your investments. For example, if you invest £10,000 in new equipment, you could save £2,500 in tax.

When do I need to claim?

You need to claim full expensing in the year that you make the investment. You can do this by amending your self-assessment tax return.

Here are a few ideas for how you could use full expensing to revamp your office:

New furniture

If your office furniture is looking tired, full expensing could be a great way to upgrade. New furniture can make your office more comfortable and inviting, and in-turn, improve employee wellbeing. Agile, flexible furniture can make a world of difference to your team’s happiness and productivity when doing day to day tasks.

New technology

New workplace technology can be a catalyst for your business to operate more effectively. For example, you could invest in new computers, printers or software.

New fixtures and fittings

If your office is in need of a fresh lick of paint or new carpet, full expensing could help you cover some of the cost.

Get in touch

If you’d like to explore a revamp of your office space while you’ve got a fantastic opportunity of an increased tax break, get in touch for a chat about how we can help.