Latest News | 17 May 2023

IT firm urges businesses to upgrade equipment

True MSP Limited
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IT services provider True MSP is urging businesses to upgrade ageing IT equipment this year or risk being hit by rocketing prices and the removal of government tax incentives.

The warning follows the introduction in Chancellor Jeremy Hunt’s Spring Budget of a new tax incentive for companies that invest in IT equipment.

The three-year-long policy, which triggered on 1 April and ends on 31 March 2026, means that companies will receive 100% first year tax relief on the full value of qualifying equipment they purchase.

However, critics claim the deal is not as generous as the previous two-year ‘super deduction’ policy brought in by Rishi Sunak during the Covid-19 pandemic, which essentially provided a 130% tax relief. But the new budget policy does enable firms to get their money back quicker.

Neil Shaw, co-founder of True MSP, said: “Many organisations tend to limp on as long as they can with ageing equipment, not recognising the adverse effects this can have on production efficiency and staff morale.

“But what many are also unaware of is the steep rise in the cost of IT equipment that is beginning to hit us all quite hard.

“Combine this with the relatively short three-year period for companies to agree and implement what could be a hefty capital expenditure, firms that don’t act now are likely to lose any benefit that this tax incentive provides. I strongly urge them to replace things like PCs, laptops and servers this year.”

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