Entering into a new business is always an exciting and challenging time. There are probably a hundred and one things buzzing around your head. It is possible that you will be busy spending on new equipment and resources for your business.
However, before you commence spending it is good to know what allowances that you may be entitled to as a new business. There are a variety of allowances that can be claimed and are subject to individual circumstances.
First-year allowances are a tax allowance that can be claimed on items that are purchased such as plant or machinery in the year that they are bought.
Being a ‘green business’ brings with it a number of financial advantages relating to investments that save energy, water or reduce your carbon foot print. Reducing your company’s carbon footprint is not only good for the environment but also for the company’s bank account.
Almost all businesses can claim an Annual Investment Allowance (AIA) for expenditure of up to £50,000. (The old rates of 40 per cent and 50 per cent first-year allowances for small and medium-sized businesses are no longer available.)
Cash flow in your first year of business can be improved considerably by making the right choices from the outset of your business. Researching your options will definitely start your business of on the right footing.
Decisions about your clam should be discussed with your accountant to ensure your business does not miss out.