….And other questions ! All good information for your business, taxes and finance.
So can my business buy a boat?
The simple answer is YES – If your company purchases a boat, it will become an asset of the company.
There are tax implications depending on whether or not employees use the boat personally – if so then a benefit in kind of 20 per cent of it’s value may need to be reported to HMRC and those employees will have a tax restriction.
The business may claim back VAT on the purchase if it has a trading purpose (for example there is a charter business). In addition all associated costs will be allowable. Personal use should be carefully considered.
Best to have a chat further with your advisor about how.
What are the best ways to do Business Entertaining?
We love seeing our clients and with that firmly back on the agenda and in the budget, whether a larger scale event or 1-2-1’s we have found it’s the little things that count!
DO ask your clients / customers / team what they’d like to do, or if you are choosing make it different or special for them (we get up to all sorts; yoga and tapas, footie and a beer, spa days and horse racing)
DO feed people, no one likes to be HANGRY in a meet up
DO remember the staff entertaining allowance for tax relief is £150 per head per year
DON’T just talk business…. yawn!
DO offer to pay – no tax relief or VAT recoverable for business entertaining however the intangible benefits are priceless
How Super is the 2021 Super Deduction?
No it’s not a new tax super hero but it is very helpful with a boost of tax relief for companies wishing to purchase new qualifying plant and machinery!
In addition to the existing regime whereby a company receives first year allowances (100% of cost vs company profits) for the purchase of plant and machinery – since 1 April 2021 companies can claim 130% on the purchase of plant and machinery – that’s 25 pence in every pound.
This is claimed by your adviser in your annual corporation tax return, however and most importantly the Asset must be purchased, in place and doing its “thang” before your company year end in order to receive the relief as early as is possible.
Is too much cash BAD for BUSINESS????!!!!
Although we believe cash is king and a strong cash position in your business is vital, if the cash in your company is surplus to working capital requirements (do you have that figure at your fingertips for your business?) then it may be a weakness for these reasons:
- It is an asset and so can be used to “earn an income more effectively
- It could be at risk from commercial factors of being in business
- It could impact upon your business’ trading tax status and lead to exposure to higher tax rates