Chartered Accountants of Poynton, Cheshire
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Tax Tip
When 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.
On-line filing
Every 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.
We can
assist
you in this process. If you are a small employer (less than 50 employees)
and you file on-line, HMRC will pay you £150 tax-free
if you
file on time for 2006/07.
Company Vans
There 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.
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Big changes to capital allowances
When a business buys a long-term asset –
such as computers, machinery or furniture – which is to
be used in and for the business, HMRC allow a proportion
of that cost to be deducted from the taxable profits.
This amount is known as a 'capital allowance'.
Significant changes have been made to the
capital allowances that you can claim.
For small businesses, the 50% first-year
allowance that can be claimed will be
extended to 5 April 2008 for income tax and
31 March for companies.
From 5 April 2008:
- for most plant and machinery, the rate will fall
from 25% to 20%
- for long-life assets, the rate will increase from
6% to 10%
- some fixtures which are integral to a building will
have a rate of
10%, although this is subject to final confirmation
from the
Chancellor.
Agricultural and Industrial Buildings
There will be changes to Industrial and Agricultural Building
Allowances, which will be gradually phased out in the
four years
to 5 April 2011.
These changes to the allowances can significantly
affect the amount of tax you owe. Appletons Accountants
will be pleased to advise you on the tax implications
of any assets you are considering buying.
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