Welcome to Harwoods Chartered Accountants, an ICAEW member firm, based in Sutton Coldfield, serving clients throughout the West Midlands and beyond.
Harwoods provide support and advice on a wide range of business disciplines, not just accountancy and book-keeping issues. We encourage all clients, whether established, new or prospective, to 'Ask Harwoods First'.
CHANGES TO ANNUAL INVESTMENT ALLOWANCE (AIA)
Changes to the Annual Investment Allowance (AIA) announced in the second Budget.
The AIA provides a 100% deduction for the cost of most plant and machinery (not cars) purchased by a business, up to an annual limit and is available to most businesses.
The maximum amount of the AIA was increased to £500,000 from 01 April 2014 for companies and 06 April 2014 for unincorporated businesses until 31 December 2015. However is was due to return to £25,000 after this date. In his speech on Wednesday 08th July 2015, the Chancellor announced the level of the maximum AIA will now be set permanently at £200,000 for all qualifying investment in plant and machinery made on or after 01 January 2916.
Where a business has a chargeable period which spans 01 January 2016 there are transitional rules for calculating the maximum AIA for that period. The maximum amount for the transitional period is the total of the time apportioned maximum AIA of £500,000 from the start of the chargeable period to 31 December 2015 plus the time apportioned maximum AIA of £200,000 from 01 January 2016 to the end of the chargeable period. However any AIA available on expenditure in the second period would be limited to the time apportioned maximum in that period.
If you have any questions please contact us.
Keeping Clients Advised
Our periodic newsletters keep our clients up to date but this page is updated on a more regular basis - so watch this space!
Current points to note:
- Real Time Information (RTI) for all payrolls now with us - any difficulties, let us know.
- Tax payers who have been 'hiding' assets in Isle of Man, Jersey or Guernsey have until 30th September 2016 to 'come clean'. After that date the HMRC will automatically receive information from banks in those jurisdictions.
- Allowances for 'using home premises' as office are changing and will be related to hours per month spent on business matters at home.
- Forms P11d (expenses and benefits) for the year ended 5th April 2014 must be submitted to HMRC by 6th July 2014 and Class 1A National Insurance paid by 19th July 2014 - automatic penalties will be imposed for non-compliance.
- Online filing becoming compulsory in many areas - VAT returns, PAYE returns, Charity Commission Returns etc. etc. Harwoods can do all of this for you.
- Academies - many schools have converted or are thinking of doing so - Harwoods have already been appointed to a number of schools in the area and can offer help and advice.
- The 100% Annual Investment Allowance for capital expenditure for all businesses has been increased to a maximum of £500,000 per year with effect from 01st April 2014 through to 31st December 2015. There are complicated rules for accounting periods which straddle these dates
- The Chancellor announced significant changed to pensions which will mean greater flexibility for those coming up to retirements.
- Auto-enrolment of pension schemes is getting ever closer and planning is required to ensure that all goes smoothly.
If you are concerned about any of the above or any other matter ASK HARWOODS FIRST.
Contact Richard Harwood for further help and advice:
T: 0121 355 0901
It costs nothing to make an enquiry...