Do you know what Capital Allowances are? If not, you could be missing out on an opportunity to reduce your tax bill.
By claiming capital allowances you could save your business thousands – if you are eligible that is. On this page, we’ll provide answers to some of the most commonly asked questions and explain how we can help you make a claim if you’re eligible to make one.
What are Capital Allowances?
In a nutshell, capital allowances are a way of saving tax when your business buys a capital asset.
Now, in order for this definition to make any sense, we need to understand exactly what is meant by a capital asset. As a rule of thumb, a capital asset can be defined as any piece of company property that plays a significant role in the day-to-day running of a business.
For example, if your company buys computers to sell, these will not be eligible for a capital allowance because they will be regarded as inventory. However, if you buy computers for your business to use, then in all likelihood you could save tax on these purchases.
What Qualifies as Capital Assets?
The sheer scale and variety of company purchases that you could claim tax relief on will surprise many, which brings us back to the point raised at the beginning of this article: are you missing out on an opportunity to lower your tax bill?
Anyone with a basic understanding of capital allowances is likely aware that they can claim relief on property, plant and equipment. However, are you also aware that you could claim on cars, stocks, bonds, art and collectables and even something as obscure as light fittings?
The list goes on and on.
How Can We Help?
From our experience, capital allowances are often under-utilised and therefore under claimed.
You could be missing out on saving thousands of pounds of tax each year. The good news is that our friendly and fully qualified accountants help clients with capital allowance claims on a daily basis, saving them money.
We have the experience and expertise necessary to stay up to speed with and take advantage of the constantly evolving demands of capital allowance legislation.
To submit a claim and maximise your capital allowances, specialist skills and a professional approach is needed.
Our tax specialists can conduct a thorough review of your business to identify every possible capital allowance opportunity.
At the moment, only a small percentage of businesses that could have their tax bill reduced actually do. This is often down to not being aware or or proactive about capital allowance claims, not to mention other areas of their finances and accounts.
Most just aren’t aware of what they’re missing out on.
Fortunately, knowing is half the battle. Now that you have a basic understanding of what capital allowances are, and how much you could save, we strongly urge you to get in touch so we can establish your eligibility and start reducing your tax liability.
Features & Benefits of our Capital Allowances Service
When we work together, you’ll benefit from our specialist skills and qualified knowledge.
Our extensive experience and expertise in tax, finance and accounting mean that over the years we have made capital allowance claims in a variety of different industries such as:
Research & development projects
New construction & refurbishment projects
How We Work
Making a capital allowance claim may seem like a daunting prospect, but it’s important to remember that we do all the work for you.
The first step is to invite you in for a free, no-obligation chat to discuss the nature of your business – or we can come to you to save you the trip. Once we have a firm understanding of your business, we’ll establish your eligibility, and if you are eligible, you can rest assured that we will act and deliver you the best possible result.
Fixed-costs, flexible payments (to help with your cash flow)
Zero-jargon: no waffle or convoluted terminology
Specialist tax advice
Reduce your tax liability
Reduce the chance of penalties from HMRC
24/7 access to your account
Unlimited support – we won’t charge for calls, emails or meetings
If we are working on a capital allowances claim for you, you might also like to know we can help in these related areas too. R&D tax credits are another often under-claimed form of tax relief you could be missing out on:
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