One sure thing is that couriers and online platforms are flying in the current pandemic but at least all those cardboard boxes are recyclable!
Whilst cash is king in these times, for those that want to or need to buy, there are also some very good deals out there and so delaying spend may not be the best option.
For a company or business, spending is now one of the main ways you can reduce your tax liabilities so if there is a commercial need now or planned for the New Year, you should consider accelerating the spend into 2020 as the cashflow impact and savings could be significant.
My rationale here is that each business is entitled to an immediate tax write for qualifying expenditure on plant, equipment and commercial vehicles by making use of their Annual Investment Allowance “AIA”.
Annual AIA entitlement has been set at £1 million for several years but from 1 January 2021, the annual limit is being reduced to just £200,000.
Critically, this can act as somewhat of a cliff edge so spending before the chimes of Big Ben at New Year could be a very tax efficient choice for some.
The next step
Please contact your local UHY adviser for more information.
