Increasingly saving your business cash through Capital Expenditure
The capital allowances scheme was introduced in 1945 and is the UK government’s tax deduction in relation to qualifying plant and machinery. The Government has recently updated the relief available on qualifying capital asset investments by introducing increased reliefs on expenditure for plant and machinery.
The qualifying period for the expenditure is between 1st April 2021 up to and including 31st March 2023. The scheme is designed to stimulate business investment by offering higher rates of relief than were previously available.
In general capital allowances allow businesses to write off the costs of qualifying assets, such as plant or machinery, against their taxable income. They take the place of depreciation, which is not an allowable tax deduction.
The increased relief announced in the Budget 2021 provides for:
First-year allowances allow enhanced rates of relief for certain plant and machinery investments, providing claims are made in the period the expenditure is incurred.
The Chancellor of the Exchequer believes these measures will have a positive impact on business investment and therefore the economy. On the one hand millions of businesses, both large and small, will pay less tax if they invest in qualifying assets. On the other these investments will stimulate businesses and the economy as a whole.
Every week our expert tax advisors save businesses tens of thousands of pounds by claiming capital allowances on their behalf. We can help your business save tax, in the same way we have helped others.
I’ve known Mike for over 20 years and during this time he has given me solid financial advice and helped with investments and strategic introductions through his vast network. My Vision is for Ohme to become the worlds must trusted smart charging platform and my team and I look forward to continuing to work with Mike and the Tributum team for many years to come.
Our experienced team can quickly assess whether your business can benefit from the above tax relief schemes. Get in contact today.
