Thinking about a new phone system? Wish you could save money and upgrade your phone system at the same time? Well, if you are quick, you could benefit from a 130% saving on your tax bill when you upgrade.
No, this isn’t some crazy incentive. This is a government-backed scheme. It’s the single biggest tax incentive of any UK government for asset investment.
But time is running out!
You Only Have Until 31st March 2023 to Claim Your Tax Relief
A new phone system can get you better performance from your team – since they won’t be constantly troubleshooting dropped lines, fuzzy calls and missing call transfers. Plus, you can get better call rates than your current provider offers. It makes sense to take this tax-saving opportunity to see what a new phone system can do for you.
Want to know more about this tax deduction scheme? Here’s everything you need to know.
The Benefits Of A New Phone System
If your company is still using an old phone system, you could be getting poor call rates and line packages that aren’t geared to your specific needs.
When you get a new phone system, you’re getting more than you might realise…
- Having the latest tech means your phone system is future-proofed and you’re protected from the big 2025 digital switch, which will leave old UK business phone systems dead.
- If you’re transferring to your new system from an old system, there’s no downtime. Your company can continue as normal without interruption.
- You can get better call rates and cheaper line rental when you upgrade to a new phone system, saving the pennies, so the pounds look after themselves!
- Bespoke packages that suit your business use instead of a one size fits all quick solution that causes your customers and staff daily headaches.
- Freedom from international call centres. Never spend another lost hour on the phone to your telephone provider’s support team halfway across the world!
So How Can I Make A Tax Saving On A Phone System?
Well, after the pandemic, the UK government wanted to shore up the economy, so the then-Chancellor (now PM) Rishi Sunak came up with some pretty radical tax incentives. The 130% super-deduction is one of them.
The super-deduction means you can claim tax back on new equipment purchases for your business. It applies to things like vans and tractors through to office chairs and, you guessed it, telecoms. Not bad for the UK government!
There are a couple of catches, of course. Purchases have to be bought, not hired. And it doesn’t include subscriptions but can include installation, consultant and engineer fees.
The biggest thing to remember about the tax super-deduction is that it ends on March 31st 2023, so now is the time to make those purchases and make the most of the best tax deduction rate you’ll probably ever get.
How Much Can I Save Then?
There’s a reason company owners are rushing to take advantage of this tax incentive while it lasts, and that’s because you can save considerably. Let’s look at some numbers to get a clear picture of what you’ll be getting in addition to your shiny new phone system…
Say you spend £1000 upgrading your phone system. You can claim a £1300 deduction against your taxable profits, saving up to 19% of that – £247 – on your corporation tax bill.
That means whatever you spend, you’ll be saving money on your taxes, which is no mean feat.
No Time To Waste…
Time is fast running out on the scheme, so if you want to know more, now is the time to act.
If you are thinking of upgrading your phone system, then now is an ideal time. Nxcoms is already highly competitive, but factoring in the super-deduction makes it an even easier decision.
So, if you want to save money, now is the time to act. Get in touch, and we can help you make the most of the tax super-deduction.
The 130% tax super deduction means you might actually look forward to your tax bill this year.
Back in 2021, the government announced some temporary reliefs for businesses, including a big tax super-deduction’ and it turns out you could save money on a huge range of business purchases.
But be warned; time is ticking on the opportunity to make the most of this tax super-deduction – there are just a few weeks left before it ends on 31st March 2023.
Wondering what it is and if you can make use of it? Read on…..
What Is A Tax Super-Deduction?
No, it’s not a bad superhero name. It’s a way for your company to save money on some of the essentials you bought between specific dates in 2021 and 2023.
Following the pandemic, the Chancellor announced some temporary measures to help out UK businesses in their spring 2021 budget. This included what was referred to as a ‘super-deduction’ – an increase in the tax relief available on qualifying assets. The key word there is qualifying, so keep reading to find out what exactly you can claim on.
To put it simply, it applies to expenditures incurred from the start of April 2021 to the end of March 2023. Companies can claim 130% capital allowances on plant and machinery, things like computer systems, tractors, HGVs, solar panels and robotic equipment, oh and new phone systems! So quite a lot!
Essentially, you’ll get a tax cut of 30p for every £1 spent on things that qualify. You can learn more about it here
Can Anyone Claim A Super-Deduction?
Not everyone will be able to take advantage of what is one of the government’s biggest tax incentives. But luckily, many will.
The easiest way to find out if you can claim a super-deduction is to know whether you pay corporation tax. If you do, you can claim a super tax deduction.
The people who will miss out on this saving are sole traders, LLPs and partnerships. But good news if you’re a landlord, because the government did extend it to include landlords investing in building machinery, solar, EV charge points and refrigeration.
Sounds Good. What Kind Of Purchase Does The Super-Deduction Apply To?
Now, this is the important bit. There are a lot of purchases that this big tax saving won’t apply to, and that includes things that are second-hand, used or lease hired. But…
You can buy using hire purchase and still qualify to get 130% of your asset’s cost back in tax write-offs, so long as you’re getting something new and unused.
So, what can you actually claim for? Some of the big things include…
- Cranes, diggers, excavators
- Production equipment, robotic arms
- Tractors, combine harvesters, crop sprayers
- Computer equipment and servers
- Electric vehicle charging points
That’s A Lot Of Construction Stuff. How Can A Business Make Use Of The Super-Deduction?
If you’re a company that doesn’t deal with or require a fleet of diggers or an army of robots (though we’d all love one), you can still benefit.
Outside of farming and construction industries, most businesses will be purchasing computer equipment and things like servers and other tech devices. Within this category, you can get a tax super-deduction on…
- Software like accounting programmes (not including subscriptions for software, just purchases)
- The costs associated with implementing new software or hardware
- Engineer, consultant or service costs (this can be a biggie for companies who outsource support)
Ok, So I Can Upgrade My Businesses Comms And Make A Tax Saving?
That’s right! You can get better connected and get more than your money back in tax deductions.
But only until 31st March this year, and of course, only if you’re turning enough profit to make the tax deduction worth it for you. If you’ve been thinking about upgrading your phone system, then now is the time with this limited incentive.
But act fast.
You might have heard of the ‘big copper switch-off’ happening in 2025. If not, it might be the prompt you need to consider switching to fibre optic broadband.
In 2025, it’s planned that all copper wire internet will be ‘turned off’, leaving you without any internet connection from that day. You won’t be automatically switched over to fibre.
So, if you want your company to stay connected and save money at the same time, this tax deduction is a great reason to take affirmative action.
Sound Like Something You Want To Explore?
Want to save more than you spent on asset investments? The tax super-deduction is waiting for you, but only until the end of March this year. If you want to take advantage of the super deduction to reduce the cost of your new phone system, we can help.
Let’s talk and find out how you can save while you upgrade.
You may have heard that the UK’s copper telephone lines will be switched off in 2025, but what does that mean for businesses?
Businesses will have to switch to the new IP system before 2025. However, we recommend doing it sooner rather than later. In some areas in the UK, the PSTN system is already being switched off, and copper lines will no longer be sold after 2023. To ensure a seamless transition businesses should switch as soon as possible.
First things first
The first thing you should know is that different options are available to you depending on your needs and budget. Some of the options available are: SIP trunking systems, hosted phone systems and on-premise phone systems.
If you’re worried about the cost of changing your phone system now, you don’t need to be. You can switch your existing ISDN lines to our SIP trunking today and actually start saving money!
SIP trunking is a type of VoIP technology. It offers lower costs and line rental fees, and you will be able to keep all your existing numbers. We can set up SIP trunk lines for you in a matter of minutes. It offers more reliability than the ISDN system and can be up to 75% cheaper!
Remember that there are also government schemes and grants in place for businesses that are making the switch from the old PSTN system.
Take advantage of the latest technology
VoIP phone systems are faster, more reliable, and cheaper than the previous technology. They also offer extensive features.
Extensive features available as standard
When you opt for an on-premise phone system, many extra features are available to you at no additional cost. These features include music-on-hold, voicemail-to-email, built-in multi-language IVR, call logging interface, call recording reports, conference rooms, voicemail controls, desktop integration and call forwarding.
Enabling working from home for employees
A hosted phone system has advantages in its flexibility, allowing employees to seamlessly work from home, office or location of their choosing.
If you’re looking to integrate mobiles, this can be easily done. Nxcoms have business plans available with flexible contract terms.
Flexibility to change anything quickly
VoIP systems offer unparalleled flexibility. You can scale quickly and easily. You can keep or change your existing numbers. You can raise or reduce the number of calls you can make. Everything is adaptable to suit your business so that you only pay for what you need when you need it.
- It’s important not to leave the switch till the last minute. Some areas in the UK are already being switched off, and copper lines will not be sold after 2023.
- Depending on the type of business you have, different options are available to suit you. These include SIP trunking systems, hosted phone systems and on-premise phone systems.
- If you’re not sure which system is right for your business or if you need more information, please get in touch with us. We will be happy to assist you.