Tax Tips and FAQs - below you will find a list of all our Tips and FAQs - click to see the full text and/or answer. You can also select specific sections to filter the information by using the menu options.
| Cars |
|
For cars purchased after 6 April 2009 (1 April 2009 for companies) capital allowances are calculated according to CO2 emissions. Cars with emissions under 160 gm/km qualify for 20% allowance and those with emissions over 160 gm/km receive a 10% allowance per annum.
100% first year allowance is available on cars with CO2 emissions of less than 110 gm/km until 31 March 2013. (e.g. VW Golf 1.6 TDI Bluemotion, BMW 320d EfficientDynamics ).
100% first year allowance is available on zero-emissions (electric) goods vehicles from 6 April 2010 to 5 April 2015.
| |
| |
| Capital allowances |
|
The Annual Investment Allowance (AIA) gives a 100% tax deduction for the first £100,000 of expenditure on qualifying plant and machinery (including vans). AIA will be reduced to £25,000 from April 2012.
Expenditure on new assets above this amount attracts a capital allowance of 20%
The annual rate of allowance for other types of expenditure is 20%. The writing down allowance will be reduced to 18% from April 2012. | |
| |
| Integral features |
|
Capital allowances can be claimed at 10% for expenditure on integral features of a building - for example electrical and cold water systems. | |
| |
| Research & Development (R&D) |
|
Expenditure on R&D by small and medium sized businesses may subject to certain conditions claim tax relief on 175% of the amount of that expenditure
| |
| |
| Bad debt |
|
A provision against specific bad debtors is allowable for tax purposes. Invoices can be credited after 6 months and the VAT reclaimed. | |
| |
| Obsolete stock |
|
Old and obsolete stock can be written off and is an allowable tax deduction.
| |
| |
| Salaries for family members |
|
A salary can be paid to other family members working in the business up to the National Insurance Limit (£110 per week for 2010/11) and only suffer basic rate tax (if already employed). If they are not employed elsewhere no tax will be deducted. This will be tax deductible for your business.
| |
| |
| Entertaining |
|
The entertaining of customers is not allowable for tax purposes, but staff entertaining is.
| |
| |
| Donations to charity |
|
Donations to local charities in return for some service (e.g. advertising or sponsorship) are allowable deductions for your business.
| |
| |
| Gift Aid |
|
Higher rate tax payers who make donations under gift aid are entitled to additional tax relief of 20%.
| |
| |
Business Taxation