NEW businesses can benefit from a variety of tax allowances and reliefs which could cut their tax bill.
These include allowances for investment in equipment and premises, tax relief and credits for spending on research and development and stamp duty relief.
Businesses do not automatically receive these tax advantages, however, by logging on to www.businesslink.gov.uk/northeast entrepreneurs can easily find out exactly what is on offer.
Business Link account managers are on hand to help businesses benefit from a wide range of allowances and reliefs, including capital allowances which enable businesses to write off the cost of purchasing certain assets against their taxable income.
Since April this year, businesses have been able to claim 100% capital allowances on the first £50,000 of expenditure on plant and machinery, long-life assets and integral features of a building. This allows businesses to deduct up to £50,000 from their taxable profit. Other advantages include enhanced capital allowances for investment in energy-efficient technology.
Through these, businesses can claim 100% enhanced capital allowances (ECAs) for investment in designated energy efficient or environmentally beneficial technologies.
There are three ECA schemes that allow businesses to write off 100% of their investment against their profits.
The schemes cover energy-saving plant and machinery, water conservation technologies and low carbon dioxide emission cars and natural gas and hydrogen refuelling equipment.
Loss-making businesses can surrender losses attributable to investment in environmentally friendly technologies in exchange for a first-year tax credit from the Government.
Further information on a full range of allowances and tax reliefs, including Business Premises Renovation Allowance, tax relief on equipment lent to employees, tax relief and credits for research and development, stamp duty exemptions in disadvantaged areas and the Enterprise Investment Scheme are available by logging onto the Business Link website.
For further information about Business Link visit www.businesslink.gov.uk/northeast or call 0845 600-9006.
