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Saving on your Tax Bill with Office Furniture

There has possibly never been a better time to consider a redesign of your office than during the Covid-19 pandemic. Many organisations are currently focussed on re-opening their offices to employees whilst maintaining high levels of protection. A recent study carried out by Harris Interactive on behalf of Kimberly-Clark Professional, demonstrated that employee confidence levels remain considerably low with regard to the ‘back-to-work’ transition. For this reason alone, it might be a good time to look at some new, post-pandemic, shiny office furniture!

Maybe you’re looking at increasing collaborative and social spaces to encourage employees to move around and communicate with the team. Our FluidSpace workspace concept is the ideal solution for reconfigurable and adaptable areas without the requirement for construction work. Our furniture range can create rooms and zones whilst minimising the requirement for fixed partitions and provide you with agile workspaces that can be efficiently reconfigured to suit your needs. In short, we offer a cost-effective solution for a refurbishment without the need for a complete overhaul!

At this point, you’re probably concerned about the outlay and wondering how you can justify a bit of a luxury at this point in time. Relax, there is good news coming your way! There are particular tax reductions that can be made prior to the calculation of your tax liability and furniture is one of them.

Capital allowances such as office furniture can provide you with a generous saving. Furthermore, office fixtures and integral features such as air conditioning, work surfaces, heating systems and sanitary products are also eligible.

Annual Investment Allowance (AIA) is quite an expense, and it’s possible that you may have utilised the total amount prior to an office refit. Tax allowances are available to you though they are spread over a number of years. However, for items such as fixtures and fittings, as mentioned above, you can still receive a deduction of 18% per annum on a reducing balance basis. For integral features, as mentioned above, you can receive a 6% deduction on a reducing balance basis. Every organisation is provided with an annual investment allowance and providing your expenditure on qualifying items doesn’t go above the available quota, you can deduct the entire amount from your profits. That has to be a win!

So, let’s break it down and throw a few numbers into the equation. Let’s say you’ve spent £10,000 on office furniture. As this qualifies for capital allowance, you can deduct the £10,000 from profit prior to calculating tax. With corporation tax currently at 19%, this offers a saving of £1,900.

In turn, this reduces the net cost of a furniture fit out to a total of £8,100.

In order to make the most of your allowances, it’s a good idea to make your purchase just before the end of the current accounting year. This way, your allowance will be available a year earlier and you accelerate expenditure into the current tax year; a great way to quickly wipe out capital assets.

At Fluid, our office furniture is not only tax efficient, but easy to reconfigure and relocate. Whether it’s a zoning system for collaboration space, or pods and booths for focus and privacy, we offer the ideal solution for a refit without the headache of a complete office rebuild. Moreover, our furniture is easy on the eye and looks highly impressive to both staff and external visitors.

Create a space that provides choice in these difficult times; that is what we can offer you at Fluid.



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