KEY OUTCOMES:
Let's get our priorities in order. Even more important than fuel!!
2011, the year for Capital Investment. Why?
Well, reasonably quietly, the Government will be making a huge difference to your business' ability to offset the capital investments against the taxable profits – from April 2012.
Currently, for the tax year 2011/12 your business has an A.I.A. (Annual Investment Allowance) of £100,000. This means that new asset acquisitions (trucks and vans qualify) you can offset 100% of the capital investment against your taxable profits.
It's a ‘use-it-or-lose-it' allowance. If not utilised, you can't carry it forward to the next financial year.
From April 2012, the A.I.A. is reducing by 75% to just £25,000 per annum!
**To put this in real terms**. If you purchase vans and trucks up to £100,000 this year AND next year; at a 40% Higher Rate tax, the difference in the tax saving will be £16,500:
·
2011
Tax saving = £40,000 (100% Utilised A.I.A)
·
2012
Tax saving = £23,500 (100% Utilised A.I.A)