TAX Talk – the blog from RJP

Autumn Statement 2012: The good, the bad and the ones to watch

What’s Best?

Increase to Annual Investment Allowance (AIA)

Top of the announcements for SMEs was the 10-fold increase to AIA. As of January 2013, the amount business owners will be able to write off as tax deductible capital expenditure in the year of purchase will increase from £25,000 to £250,000. This is a massive boost and far more significant than the previous government’s attempt at encouraging investment amongst business owners. In April 2010, the relief was £100,000, which was also generous, but not large enough to enable a lot of companies to write off all their capital purchases in the first year. This new limit however will achieve that in a single hit and we expect a lot of businesses will take advantage and upgrade their infrastructure. (more…)

Leave a Comment January 18, 2013

Headline tax rates are never what they seem

If you’re a Sunday Times reader, you could not fail to notice the article in January about footballers and their tax affairs. This highlighted how many footballers have been avoiding the 50% tax rate by using image rights companies into which the majority of their earnings are paid and then using their director’s loan account to withdraw income. Apparently, it is possible to pay a rate of just 2% by following this strategy. We wish it were that straightforward!

Continue 3 Comments February 8, 2011

Tax free perks could be a summer bonus for staff

Many tax breaks are swiftly disappearing, as the Government’s reforms begin to take shape. What perks can you offer staff that are tax efficient? They can also be beneficial for your business…..

Continue 1 Comment July 26, 2010