We have been complimented on the updates posted on Twitter live during the Budget and hope to continue this by summarising the main points of interest to small business owners and individuals in the street.
The Chancellor George Osborne started by painting the picture of the poor state of the economy and among various political comments stated that due a cautious approach fiscal goals would be met one year earlier than expected in 2014. The inflation target will remain at 2% which has already been exceeded, this will peak at 2.7% later in the year and then reduce. In terms of the approach to the deficit a lower spending rather than higher tax route is being taken, read more
I was speaking to a client yesterday regarding the options of having a company car and coming from a carbon reduction background he was keen to have a low emission car and wanted to know the tax effect. This is an area where the government are encouraging growth using the taxation system as a carrot, to encourage lower emissions, the arguments regarding the costs and environmental impact of battery materials and technology we will leave to other forums. read more
For most small businesses almost any capital expenditure is immediately allowable for tax in full provided the total value for the accounts year is less than the Annual Investment Allowance (AIA) of £50k. There are special rules for cars which are not within the scope of this article, and needless to say for such a generous allowance the Revenue take a strong stance in querying any expenditure which does not qualify. read more
For partnerships and the self employed there is no laid down rule for claiming motor expenses, it is up to the taxpayer to decide whether to claim for tax purposes a proportion of their motoring costs, or the Revenue authorised mileage rate. Obviously you want to claim the maximum tax relief and it pays spend some time looking at which will be most beneficial for you. read more