The next year may be a time of financial planning, as HM Revenue & Customs have announced changes to the rates and maximum capital allowances which can be claimed each year. All businesses, whether sole traders, small businesses or limited companies, which purchase plant and machinery will be affected by the changes. For any business which doesn’t have an accountant, this may be the time to consider a small business accountancy that can maximise your investments.
At a time when the government are encouraging enterprise to boost growth of the economy, a business which has capital expenditure will see tax relief fall. From April 2012, the maximum amount of annual investment allowance will reduce from the current rate of £100,000 to £25,000. The rates of Writing Down Allowances will also be reduced, from 1st April 2012 for businesses who are within the charge to Corporation Tax and 6th April 2012 for anyone within the income tax charges.
Financial planning is necessary to allow any forthcoming purchases of plant and machinery to be bought before April 2012. Low cost accountants will make you aware of all legislation changes which could affect your business, or changes in tax relief and allowances which will affect you. This will enable you to make appropriate financial decisions in order to maximise return on investments.
There are many changes made to legislation, including tax relief, which is due to undergo a major overhaul. Any of these changes could have an adverse effect on your business, which is why outsourcing administration to a small business accountancy is advisable.
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