Chartered Accountants of Poynton, Cheshire |
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Company VansThere has been a big change to the taxable benefit due on vans. Where an employer provides a van for an employee, which they can use for private journeys, the taxable benefit from 6 April 2007 becomes £3000 per annum. This taxable benefit is not levied if the private use is merely incidental. HMRC have given some guidance on what is incidental but this is not exhaustive so we will be pleased to advise on the situation if you are providing vans that can also be used for private journeys. Filing onlineEvery year, employers are required to send details of the salaries, tax and National Insurance deducted from their employees. These year-end returns have to be submitted by 19 May 2007 to avoid a fine. These documents can be submitted on-line via the internet. Appletons can assist you in this process. If you are a small business - defined by HMRC as having fewer than 50 employees - and you file your P35 online, HMRC will pay you £100 tax-free for doing so. You usually claim this back by reducing your next monthly PAYE payment. Tax TipWhen you buy new equipment for your business, ask whether it is energy or water efficient. Check the list on www.eca.gov.uk to see if you could get a 100% deduction fo the cost in the year of purchase. |
Fixed Assets - Making those claims...When a business buys a new fixed asset it is not normally possible for the whole cost of the asset to be deducted from the taxable profits. What is a fixed asset?In broad terms a fixed asset is any item that will be used in the business and will have an expected life of more than one year. This will include cars, computer systems, vans and industrial machinery. What can be claimed?The whole cost of the asset cannot be claimed in the year of purchase. Revenue & Customs allow a portion of the asset to be claimed each year that the asset is owned by the business. This portion is known as a 'capital allowance'. By granting a portion of the cost, recognition is given to the fact that the asset will last more than one accounting period. The rates to be used depend on the nature of the asset:
Enhanced allowancesIn some cases, enhanced allowances are permitted. These are known as 'first-year allowances' (FYA) and have recently been granted to small businesses on items such as computers and IT equipment. The rates of these allowances have ranged from 40% to 100% depending on when the item was bought. The enhanced rate is only granted in the first year; thereafter, the rate drops to 25%. Environmentally-friendly assetsEnhanced allowances are also available for the purchase of environmentally-friendly assets, such as approved water-efficient toilets. If you are about to purchase an asset, Appletons Accountants will be pleased to advise on the tax implications. |
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