ACT | The App Association, along with more than 200 other businesses and trade bodies, recently sent a letter urging the UK government to make full expensing a permanent feature of the UK tax system in the 2023 Autumn Statement, which provides tax policy and rate updates. Our advocacy was successful, resulting in full expensing subsequently being announced by the Chancellor. Permanent full expensing will mean that UK business investment in IT equipment and machinery can continue to be deducted from profits to reduce tax bills.
Sound tax policy is crucial for small businesses because every penny matters to them. A successful tax regime encourages small businesses to invest in growth, which in turn generates employment opportunities and adds to the UK economy. Full expensing gives small businesses money back to invest in growing their business by investing in new equipment and machinery, thereby removing barriers to innovation created by resource limitations and enabling access to the latest technologies.
The App Association welcomes the UK making this tax break permanent because it will create certainty for entrepreneurs who want to invest in growth and innovation.