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Browsing Posts tagged capital allowance claims

Assisting Day Care Nursery Owners in Reclaiming and Reducing Their Taxes

If every nursery owner has a different idea of what their ultimate “Wish List” would look like (a list of educational equipment and safety features they would like to incorporate within their business), then they all certainly have the exact same obstacles in acquiring their list – this being the  NECESSARY FUNDS to pay for them!

IF ONLY WE HAD ENOUGH FUNDS TO BUY……….

The plain and simple fact is that the vast majority of day nursery owners do have access to £1000’s in the form of a tax rebate from years of overpaid taxes.

HOW TO RECOVER YOUR OVERPAID TAXES

The process of reclaiming your over paid taxes is available in the form of a Capital Allowance claim.  Capital Allowances have been created by the government and allows business owners the ability to offset taxable profits against the purchase of capital assets for your business, and a tax payers right to claim.  Providing you have paid tax on any profits you made within the last 2 years, then you will be entitled to make a retrospective capital allowance claim and receive a lump sum in the form of a tax rebate.  Also by making your capital allowance claim you will also automatically begin to reduce the amount of tax you pay in future years.

The result of your capital allowance claim will allow you to purchase your “WISH LIST”

Capital Allowances are somewhat of a specialised area, and in order to fully maximise your potential claim you are advised to seek specialised help and advice.

To arrange an informal meeting with one of our Capital Allowance specialists, please call us today on: 01246 293011, alternatively email sales@salmon-business.com

Further help and information may also be found on our web site at www.salmon-business.com

The UK taxation system is over-complicated

The UK taxation system is over-complicated

The UK taxation system is over-complicated, the government says

The “spaghetti bowl” of UK tax law is to be simplified to cut the burden on business and attract foreign investment, George Osborne has said.

The chancellor is setting up an Office for Tax Simplification to streamline the 11,000 page tax code.

He said Britain had “one of the most complex and opaque tax codes in the world”.

And he wanted a “permanent body to push against the forces of complication” and make life easier for firms.

Announcing the new body, Mr Osborne said his “dream” was “that people might actually understand the tax laws with which they were being asked to comply with”.

The new body will initially conduct two reviews – streamlining 400 tax reliefs, allowances and exemptions and simplifying the tax system for small businesses, including a simpler alternative to the controversial IR35 code.

It will advise ministers where the tax system is too complex but it will not look at tax credits, which Mr Osborne said he considered part of the benefits system.


‘Economic boost’

The chairman of the new body will be former Conservative MP and Treasury minister Michael Jack and its director will be John Whiting, formerly of PricewaterhouseCoopers, who is tax director at the Chartered Institute of Taxation. Neither will be paid.

The government says the tax system became a “hindrance” to business under Labour and that by simplifying it and making it more competitive for small firms, it will stimulate economic growth.

In a speech, Treasury minister David Gauke said: “The tax system created by the previous government was overly complex and has made the tax affairs of millions of families and businesses across the UK extremely complicated.

“We need to reduce the complexities in our tax system and the coalition is committed to delivering that goal.

“The Office for Tax Simplification will provide important advice that will help inform us in making the right reforms to the tax system that will help to pave the way to bringing more international business to the UK, which will give our economy the boost it so urgently needs in the years ahead.”

The OTS’s remit covers UK taxes and duties administered by HM Revenue and Customs, but it will not deal with tax credits or taxes administered by other bodies nor will it have any influence on setting tax rates.

In his first Budget last month, George Osborne set out plans to reduce the headline rate of corporation tax by 28% to 24% over four years in an effort to show Britain was “open for business”.

But this will be partly paid for by cuts in capital allowances, which provide tax breaks to firms investing substantially in operational assets such as machinery. Critics say this will penalise small and medium-sized manufacturing firms.

In May the government set up the Office for Budget Responsibility, to provide the government with independent forecasts of UK economic growth and public deficits.

Just another instance of a Government giving with one hand, only to take back with the other!

The government will start to reduce levels of Capital Allowance rates as of April 2012, all Commercial property owners are now urged to make their Capital Allowance claims now in order to fully maximise their tax allowances, and lock in future tax liabilities after April 2012.

Capital Allowances are somewhat of a specialised area, and in order to fully maximise your potential claim you are advised to seek specialised help and advice.

To arrange an informal meeting with one of our Capital Allowance specialists, please call us today on: 01246 293011, alternatively email sales@salmon-business.com

Further help and information may also be found on our web site at www.salmon-business.com

Government will cut capital allowance rates from April 2012

Government will cut capital allowance rates from April 2012

Reduction in Capital Allowances

Hospitality businesses that are planning to spend more than £25,000 on plant and machinery are strongly advised to do so before April 2012 when the annual investment allowance will drop from £100,000 to £25,000.

The Institute of Hospitality are now strongly urging their members to lock in their Capital Allowance claims now,  and have issued the following statement on their web site.

In his inaugural Budget the Chancellor announced a reduction in the headline rate of corporation tax. The aim is to reduce the main rate from 28% to 24% by 2014 through annual cuts of 1% beginning on 1 April 2011.

Although this will help operators save and/or invest, the Chancellor is balancing the books by reducing the rate of capital allowances, which are effectively tax breaks that businesses receive in respect of expenditure on plant and machinery.

It is estimated that 20-40% of a hotel’s cost and 50-90% of a restaurant’s fit-out costs could qualify for capital allowances. So the cut in capital allowances represents a potentially sizeable increase in tax for many hospitality businesses.

Businesses are currently allowed to deduct the full cost of the first £100,000 of expenditure against taxable profits. From 1 April 2012 the Chancellor’s balancing act means only the first £25,000 will be allowed. In addition from 2012, any investment over and above £25,000 will now receive only a 18% tax deduction rather than the existing 20%. The allowances available on “integral features”, such as the cost incurred on electrical systems, cold water, heating and ventilation systems, and lifts, will also see their rate reduce in 2012 from 10% to 8%.

Although certain other expenditure on items such as certified “green” plant and machinery will still qualify for 100% first-year allowances, and the vast majority of hospitality businesses may not exceed the £25,000 annual allowance, businesses should carefully consider how and when to invest in plant and machinery to ensure they receive the optimum tax deduction. They need to look closely at whether the cost is a repair or a replacement, ensure contractors clearly identify each element of work carried out on their paperwork, and involve specialist advisers to ensure claims are maximised.

All Commercial property owners are strongly urged to make their capital allowance claim(s) as soon as possible, even if the amount of tax you have paid in the previous 2 years and expected amounts for this year are not very high, by locking in your claim now, you will still be eligible to benefit from the higher Capital Allowance rates of today.

For further information as to the possible potential claim you are entitled to, followed by your FREE site survey, please contact Salmon Business Group and speak with one of our Capital Allowance specialists.

Visit our web site: www.salmon-business.com, alternatively call us direct on 01246 293011.

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