Newsletters News Article
Published: 8th March 2012
Annual Investment Allowance Reminder
As the date for the reduction in the Annual Investment Allowance from £100,000 to £25,000 draws ever closer, I felt it was worth reminding you that NOW is the time to invest in your business if you are going to get the maximum allowances.
Sadly, you can spend £25,000 without seeming to have much to show for it these days, so it is essential that you can claim full allowances on the expense wherever possible.
Annual Investment Allowance is available on ’plant and machinery’, which includes items such as computers, furniture, vans (not cars) and tools. It is available for limited companies as well as for sole traders and partnerships, but the date of the reduction differs, so be careful!
For businesses that are subject to Corporation Tax, so Limited companies and LLPs, the reduction takes place on the 1st April, whilst for partnerships and sole traders the key date is the 6th April.
Beware too if your year end is NOT the end of March - your allowances will be adjusted in proportion with your year end. Using a year end of 30th September as an example, you would be entitled to the allowance of £50,000 if spent within the first six months, i.e. to the end of March 2012, and then half of the allowance for expenditure of up to £12,500 in the second half of the year.
As ever, if you are unsure and would like to check whether your potential purchase would be eligible, or if you would like advice on any other matter, do please get in touch.
More information about the change in the allowance is available via http://www.hm-treasury.gov.uk/d/capital_allowances_annual_investment_allowance.pdf
Rickaby & Co
4 Claridge Court
Lower Kings Road
Tel: 01442 873236
Fax: 01442 875316
Author: Rickaby Accountants
Rickaby & Co Accountants in Berkhamsted offer the full range of accountancy services to local businesses.
They regularly post their newsletter to InfoBerkhamsted
Beechwood Fine Foods
Hanne Grice Dog Training
Roy Chapman Ltd