Office furniture is an essential requirement in running a business from premises. It really doesn’t matter if you have one or two members of staff or 40 – they will need somewhere to sit, somewhere to work from, such as a desk, and somewhere to keep any items they may need.
This office equipment is an asset to your business – a long-term investment that will depreciate over the ensuing years. The rate at which it depreciates varies greatly, some equipment is built to last longer than others and in some cases . . . well, it simply works out that way!
What is office furniture depreciation?
Everything depreciates and at some point will need replacing. An office chair and a desk reach a stage where they are not fit for purpose and offices come to the stage where they need the benefit of renovation or a refit.
Factoring in a depreciation schedule will allow you to keep track of costs and the profitability of your business year-on-year. Estimate how long your office equipment will last and its likely rate of decline and record the information, remembering to keep it regularly updated.
Some of the UK manufactured furniture ranges we supply, and have supplied over the years, we still see in use, in the correct environment, 20 to 30 years after it was purchased but some products only have a 12-month warranty from new.
Depending on your need or budget tends to dictate how long it lasts. Much of the preloved furniture we sell is between two and 15 years years old so depending on its age depends on its longevity.
Can you claim office furniture on tax?
Depreciation will lower your profit margins but may bring the advantage of reducing your tax bill. Consumables such as your stationery may be deducted from your tax bill – but only during the year in which you bought them and it’s worth remembering that for most companies only fixed assets can be depreciated.
It’s also worth repeating the news we brought you earlier this year concerning the tax changes unveiled by the Government to encourage spending. The introduction of a super-deduction now means benefits and savings for businesses in respect of qualifying “plant and machinery investments” – a category which includes desks and chairs bought for offices.
The changes mean limited companies can claim 130% super-deduction capital allowance on office furniture bought between April 1st this year and March 31st 2023 – effectively reducing their tax bill by 24.7% of the amount they have invested in furniture and other qualifying assets.
Chrisbeon is ready, willing and able to help you meet your office furniture requirements. We are happy to talk through your needs over the phone or would be delighted to welcome you to our Stafford Park showroom – or come and visit you to discuss requirements if it is a large project.
Our expertise has been accumulated over nearly 50 years of serving businesses across the country and we would love to share those benefits with you!