NEW UPDATE: Buy More With Your Annual Investment Allowance Now
Grow your business without being taxed. Find out how you can buy a new van for your business at a tax-free rate before 31st March 2021.
March 09, 2021
As the financial year comes to an end, so does the deadline for claiming your Annual Investment Allowance. Businesses around the UK have until the 31st March 2021 to invest their profits in buying capital equipment that qualifies for immediate tax-relief. If your business requires the use of a van, why not claim your Annual Investment Allowance and upgrade before 31st March to receive a tax-free rate?
Every year, businesses are entitled to claiming a significant monetary investment allowance which qualifies for immediate tax relief. In other words, it is a way to claim tax relief on capital used within your organisation, usually plant and machinery. It is important to purchase any capital with your financial returns before the fiscal year is taxed to ensure the costs of your purchases are deducted from your final revenue amount and therefore does not contribute to your final tax figure.
You may use your investment allowance to purchase any qualifying capital that you will use for your business (not for personal use). These items include integral features, fixtures (fitted kitchens or bathrooms in offices…etc), machinery, business lorries, vans and trucks. Cars do not qualify for the Annual Investment Allowance although business mileage and fuel cost may be expensed.
The Annual Investment Allowance cannot be used to purchase items that will be used for personal use or solely for business entertainment, for example, a yacht or a jukebox. You must also remain as the owner of any capital purchased and not lease the equipment. Other items that do not qualify include land and structure replacements such as roads, or building structure replacements such as doors, gates, gas and water systems…etc.
Unfortunately, you will miss out on 2021’s Annual Investment Allowance and will need to wait until the next tax year to qualify. Get ahead of the curve and visit your local Sandicliffe Transit Centre to take advantage of our latest offers on New Ford Vans.