Tax Tip – New Payroll Year

As we approach the beginning of a new tax year, it’s important to give some consideration to the timing of capital expenditures and making the most of the reliefs you’re eligible for. If your Annual Investment Allowance (AIA) has already been used up, it can be better to wait until the start of the new year so you can claim the AIA for that year, rather than claiming the Writing-Down Allowance (WDA). If an expenditure is incurred by your company between 1 April 2021 and 31 March 2023, a claim for either the super-deduction or if applicable, the 50% First Year Allowance (FYA) could be made instead of delaying.

If you’re using assets for both business and private use, there are still reliefs to be claimed – however you do have to take into account and discount the personal element as it’s disallowed. For sole traders and partners, a pool is available to enable the disallowance in respect of the private use element to be calculated.

If you’re unsure what your timing should be, and whether you’re getting the allowances and reliefs you’re entitled to, we’re here to help. Contact us today for a consultation, and let our experts help you manage and make more of your finances.