Businesses 'need advice to get information about tax allowances'

Date: 30th July 2008

There are a whole host of tax allowances and reliefs that newly started businesses can benefit from, an industry expert has said.

Writing in The Journal, experienced business reporter Karen Dent explained that many sole traders and small businesses simply did not know about the tax relief that was open to them.

She said that companies do not "automatically receive these tax advantages", making it important for bosses to do some careful research about their entitlements.

In particular, the journalist highlighted changes to capital allowances rules which mean that, since April, firms have been able to claim a 100 per cent allowance on the first £50,000 of expenditure on plant and machinery.

"This allows businesses to deduct up to £50,000 from their taxable profit," Ms Dent added. "Other advantages include enhanced capital allowances for investment in energy-efficient technology.

"Through these, businesses can claim 100 per cent enhanced capital allowances (ECAs) for investment in designated energy efficient or environmentally beneficial technologies."

Earlier this month, accountants told Farming UK that recent court cases had made it hard for small-scale farmers to work out what capital gains tax allowances they were entitled to.