Are you thinking of investing in new plant or other equipment? Remember that the super-deduction offering 130% first-year tax relief is available to companies until March 2023.
The super-deduction tax break was introduced on 1 April 2021 and allows companies to deduct 130% of the cost of any qualifying investment on most new plant and equipment that would ordinarily qualify for 18% main rate writing down allowances. This means that for every £1 a business invests they can reduce their tax bill by up to 25p. The temporary tax relief applies on qualifying capital asset investments until 31 March 2023.
The super-deduction is designed to help companies finance expansion in the wake of the coronavirus pandemic and help to drive growth.
In addition, an enhanced first year allowance of 50% on qualifying special rate assets has also been introduced for expenditure within the same period. This includes most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances.
The measures have effect in relation to qualifying expenditure from 1 April 2021, and exclude expenditure incurred on contracts entered into prior to Budget Day, 3 March 2021.
Effective wealth management for family investment companies depends on clear investment rules, sensible cash planning and regular oversight. Families must...
The HMRC-approved tax-free mileage rates determine how much employers can reimburse employees for using their own vehicles for business travel...
Car dealerships in the UK operate in a high-volume market. According to the Society of Motor Manufacturers and Traders (SMMT),...
The Seed Enterprise Investment Scheme (SEIS) helps eligible early-stage UK companies raise up to £250,000 by offering valuable tax relief...
The trading allowance 2027 rules lift the tax-free limit for side hustle income from £1,000 to £3,000, starting on 6...
Choosing between Xero and QuickBooks can affect how efficiently your business manages invoices, reconciles bank transactions, processes payroll and prepares...
If you owe HMRC money and you have been ignoring the letters, the rules around what can happen next are...
Capital Gains Tax (CGT) can significantly affect the profits you make when selling property, shares or other valuable assets. However,...
A construction subcontractor may complete a job worth thousands of pounds, only to find that the contractor has deducted 30%...
Preparing year-end accounts is an important responsibility for every UK limited company. It involves reviewing financial records, correcting accounting errors,...
