One of the problems with purchasing equipment is that tax relief is normally spread over many years.
In 2008, the Government introduced a relief of 100% in year one for up to £50,000 of plant, machinery & equipment acquisitions. This is known as the Annual Investment Allowance.
Whilst this allowance is valuable, some businesses do spend considerably more on plant, machinery and equipment.
Question: How can you get more 100% allowances if you have already spent £50,000?
The problem that belies most small and medium sized businesses is that they leave the calculations to their accountants. Sometimes this can lead to the balance of assets over £50,000 all being treated the same. This can result in assets then receiving much less of an allowance.
Returning to the question, businesses need to carefully analyse their asset purchases and identify any further assets that can qualify for 100%. Alternatively, let us come along, review your assets or plant register, and see what we can identify as qualifying.
Question: What does qualify for 100% relief in year one?
We have all heard of ‘climate change’ and to most, it seems to involve inconvenience and cost.
Well, here we have a benefit!
If a business buys energy saving plant that is shown on an approved list, then it qualifies for 100% tax relief in year of acquisition. Saving the environment and saving costs – sounds like something you can live with.
Question: What types of items are on the list?
Some examples are:
- Boilers and boiler equipment
- Combined heat and power equipment
- Compressed air equipment
- Lighting
- Air conditioning
- Motors
- Insulation
- Refrigeration
Only specific products qualify. Ring us for practical advice on how to go about securing this very valuable relief.