Did you know an asset bought for your business, with an expected life of two or more years, does not qualify for normal tax deductions?
You may though be entitled to claim capital allowances (CAs); the most common asset which qualifies for CAs comes under the category plant and machinery.
Machinery ‘an object with moving parts that performs a function’, can cover anything from clocks to printers.
Plant is trickier and is the subject of regular disputes with HMRC.
“A plant is an asset which isn’t a building, structure or machinery and has a function for your business,” said Peter Way-Rider, tax manager at Ellis & Co.
“For example a special bracket needed to hold a machine in place would be classed as an item of plant, this may be an expensive item so ensure it is categorised correctly so you don’t miss out on a CAs claim.”
For advice on this or any other tax matter contact Peter on 01244 343504.