Lots of businesses have 31 March or 5 April year-ends. If that's the
case, and you're thinking of making new capital purchases for your
business (computers, plant and equipment, vans, that kind of thing) you
should consider buying them *before* your year-end rather than after.
That will benefit most businesses, as you'll be able to deduct the costs
from *this* year's profits when your tax bill is calculated and you'll
pay less tax as a result. If you delay the purchase a few days into the
next year then you'll get that tax relief in *next* year's accounts -
you'll still save some tax, but 12 months later.
On top of that, some commentators are speculating that the currently generous tax reliefs for the capital purchases of small businesses might be withdrawn for the next tax year, so that's another reason to consider bringing purchases forward.
On the other hand, surprising as it may seem, some people might prefer higher profits this year and lower profits next year - for example, those exposed to the 50% tax rate next year, or some claimants of tax credits. So if you think that might include you, tread carefully - talk to us if you're not sure.
On top of that, some commentators are speculating that the currently generous tax reliefs for the capital purchases of small businesses might be withdrawn for the next tax year, so that's another reason to consider bringing purchases forward.
On the other hand, surprising as it may seem, some people might prefer higher profits this year and lower profits next year - for example, those exposed to the 50% tax rate next year, or some claimants of tax credits. So if you think that might include you, tread carefully - talk to us if you're not sure.
And never buy things just to save tax!
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