Reminder: Don’t forget to use your AIA
Reminder: Don't forget to use your Annual Investment Allowance!
As detailed on our news page last month the Annual Investment Allowance (AIA) will reduce from £100,000 to £25,000 in April 2012.
Currently, businesses that purchase plant and other qualifying equipment can write off the total cost against their taxable credits, as long as the claim doesn't exceed £100,000. If you are self-employed, this allowance is worth up to £50,000 in lower tax payments, depending on the rate of tax you pay.
Timing is crucial, especially if your accounting year-end doesn't correspond with the tax year-end.
Contact us for more advice or visit our blog for details on the types of expenditure that qualify.
Submitted by MSB Accounting on Monday 3rd October 2011