In the latest 2021 budget announcement, the UK government announced a ‘super-deduction’ tax break regime. From 1st April 2021 until 31st March 2023, it allows companies to claim 130% of what you spend on equipment for your business against taxable profits. So, what does this mean and where should you prioritise investment?
Dubbed ‘the biggest business tax cut in modern history’, the super-deduction scheme is designed to encourage businesses to invest in themselves. The Office for Budget Responsibility (OBR) forecast a 10% rise in the level of business investment thanks to the tax break, worth roughly £20 billion per year to the economy.
The COVID-19 pandemic has – understandably – deterred many businesses from spending, however investment that supports growth is now crucial to both them and the economy. As with any scheme, there are terms and conditions to understand, however the opportunity on offer should not be ignored.
The super-deduction tax break means bringing forward your investment plans is a no-brainer. By correcting any ‘knee-jerk’ moves made in recent months, looking again at your infrastructure and investing in the right tools and technology, your business can be more successful and recover at pace from the pandemic.
Moving forward, it is commonly accepted that the modern workforce will undertake a mix of office and remote working. Equipment and solutions that facilitate this will be vital for businesses, in the interests of efficiency and keeping their workforce connected to each other, their customers and centralised business systems.
Due to the pandemic, you may have adopted solutions to address this in the short-term but now is the time to implement changes that can permanently underpin your operations.
Cloud voice and UC solutions have been the heroes of lockdown, helping many businesses and their employees collaborate during COVID-19. With the need to accommodate hybrid working on the horizon, it’s important for your setup to be optimal both when remote and in the office.
Consider whether systems are siloed, all functionality is available to your workforce regardless of their location and if you’re paying for more individual tools than needed. If you can displace disparate tech and enable existing solutions to do more, for example by leveraging Microsoft Teams Direct Routing, that’s always preferable versus supporting (and paying for) additional technology. You’ll also see better adoption as your workforce are already comfortable with using the platform.
If you’re looking for a phone system that allows your team to work flexibly across devices, we recommend purchasing licenses for user-friendly cloud systems like 3CX or Gradwell’s own solution, Wave. Platforms such as these are highly scalable, work anywhere with an internet connection and allow you to maintain business continuity. Vital abilities such as being able to transfer calls and understand people’s availability (presence) have also been an issue for remote workers, which solutions such as 3CX overcome instantly.
As well as your tech stack, think about how your workforce’s wider setup can be optimised. Updating office equipment and investing in quality IT kit such as headsets can have an – often underestimated – positive impact on morale and performance. This also ensures improved quality of communication, particularly voice which can be another common remote working complaint.
The super-deduction’s sole aim is to repair the economy and help businesses succeed by investing in themselves. By starting with communication, you can strengthen key relationships and equip your workforce for modern working – both of which are fundamental to making success possible.