Claiming Tax Reliefs

Have you ever thought of claiming a tax deduction for your birthday gift? According to the laws of HMRC, you can freely do so provided that they are used for business purpose. If you spend money on your business, you can expect set off the cost against your tax bill. But as with all other tax reliefs it comes with conditions. One of these is that the expense isn’t for a capital item, such as equipment lasting more than a year or two. If it is, there are special rules that still allow you to claim relief,

If you purchase equipment in a personal capacity and decide to use it in your business, you can claim capital allowances based on market value of equipment at the date you first put it to use in your business. The market value in tax perspective means the amount that you could expect to sell it for.

If you receive a gift of an asset you intend to use for business, it is advisable that you do it straight away without any delay. The longer you hold onto it for non-business purposes, the less it will be worth and so the tax relief you can claim will also fall. If you delay bringing the equipment into business use, you could end up waiting for tax relief a lot longer than you expect.

Before claiming any tax reliefs it is better to have a good tax plan in order to avoid any unnecessary conflicts with HMRC. If you have any problems as to tax planning, contact KVS Accountants on 020 7731 6131 for a free tax consultative session. KVS are accountants and tax consultants in Earlsfield, Southfields, Wimbledon, Barnes, Wandsworth, Kensington, Notting Hill, Holland Park and Richmond

 

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