Newton & Co August Blog through the eyes of John Robson CIMA Member in Practice
Annual Investment Allowance
Leverage the Annual Investment Allowance (AIA)
The AIA, set to £200,000 from April 2016, allows businesses to write off the costs of certain assets against profits in the year of purchase. This helps to bring quicker tax relief against capital expenditure. Most assets purchased for business use qualify including IT investments, office equipment and plant and machinery. So if your business needs to invest in capital equipment now is a good time.
Claim your mileage
If you are a business owner do not forget to claim all your business mileage. Keep a log of all your business miles and you can claim up to 10,000 miles at 45p per mile and any excess at 25p per mile. It is all 100% tax allowable.
Keep it in the family
Business owners can currently earn £11,100 of tax free income from assets. But by employing their spouse as a director or partner they can distribute the income depending on their personal allowances.