[ˈkæpɪtl əˈlaʊənsɪz]
Capital Allowances are a form of tax relief that encourages innovation by deducting costs of certain business goods from their taxable profits.
Capital Allowances are a type of tax relief available to businesses which allow companies to deduct the cost of purchasing or improving certain types of assets, such as equipment or buildings, from their taxable profits. This can result in a significant reduction in the amount of tax a company has to pay.
Sole Traders and Self-employed people can claim their Capital Allowances in their Self Assessment, Companies must include their information in their tax return at the end of the year.
Businesses need to keep detailed records of their expenditure on qualifying assets and may also need to provide evidence of how the asset is being used in the business.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.
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Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.
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