The cost of buying new assets can be reduced greatly by taking advantage of capital allowances – but major changes mean their impact will weakened after April 2012.
Currently spending on qualifying plant and machinery up to an annual maximum of £100,000 is eligible for the 100 per cent tax relief but from April that will be reduced to £25,000.
Capital allowances allow businesses to write off the cost of capital assets against taxable income.
In addition Writing Down Allowances will also be reduced from 20 per cent to 18 per cent for the main rate and from 10 per cent to eight per cent for the special rate.
If you are planning a big investment such as an IT or telecoms system in the next year, it makes sense if possible to bring it into the current tax year to get the most advantage of capital allowances.
Are your current IT and telecoms systems optimised for maximum efficiency for the way your business runs today?
There has been a big change in the way companies with more home working, field workers and regional offices – but many businesses have not upgraded their systems to manage these new ways of working.
For more information on how Microcare Systems can help your business contact us on 0800 515 513 or visit www.microcare-systems.co.uk
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