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.