Entries from September 2007 ↓

For small businesses thinking of buying new equipment and machinery in the near future - STOP! The government has announced a new method of tax relief from 2008 which could benefit small businesses in a big way.

These new rules are expected to come in from April 2008 and businesses can then claim the whole cost of capital expenditure (well, upto £50,000) in year one against their profits whereas currently it is spread over a number of years. This will give you a significnat cash flow benefit if you wait until 2008 to buy your new laptop or lathe.

This is the real test of whether tax rates are going up or down. The Adam Smith Institute calculates by which date during the calendar year the average UK worker has paid his annual tax bill and can actually start earning money for themselves to spend! All types of tax are taken into account including income tax, VAT and duties on petrol, alcohol and tobacco.

In 2007 the magic date is 1 June which is the same as 2006 but more than a week later than it was four years ago.

HMRC has announced that it doesn’t expect to pay the £150 PAYE online filing incentives to small employers until December 2007. I wonder if, on the same basis, they would accept us paying our taxes 6 months late?!