Capital allowances help
Capital allowances help
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Sway

Original Poster:

32,438 posts

211 months

Yesterday (17:43)
quotequote all
Looking for some advice on capital allowances - potentially a relatively complex scenario!

All relating to how/what HMRC would deem the asset as (at my count, there's four possible options that could all at face value potentially apply - with very different outcomes).

Then, especially if it's at the worst end of the spectrum, what actions my business might be able to take to mitigate this from a cash flow perspective (again, there's options from the business perspective).

Anyone got a contact they'd recommend?

StevieBee

14,323 posts

272 months

Yesterday (19:14)
quotequote all
Sway said:
Looking for some advice on capital allowances - potentially a relatively complex scenario!

All relating to how/what HMRC would deem the asset as (at my count, there's four possible options that could all at face value potentially apply - with very different outcomes).

Then, especially if it's at the worst end of the spectrum, what actions my business might be able to take to mitigate this from a cash flow perspective (again, there's options from the business perspective).

Anyone got a contact they'd recommend?
Your first (and probably only) stop should be your accountant. They will be best placed to understand your context and advise accordingly.

If you haven't got one, go hire one!



Sway

Original Poster:

32,438 posts

211 months

Yesterday (19:43)
quotequote all
StevieBee said:
Sway said:
Looking for some advice on capital allowances - potentially a relatively complex scenario!

All relating to how/what HMRC would deem the asset as (at my count, there's four possible options that could all at face value potentially apply - with very different outcomes).

Then, especially if it's at the worst end of the spectrum, what actions my business might be able to take to mitigate this from a cash flow perspective (again, there's options from the business perspective).

Anyone got a contact they'd recommend?
Your first (and probably only) stop should be your accountant. They will be best placed to understand your context and advise accordingly.

If you haven't got one, go hire one!
He's admitted he's a little out of his depth on trying to navigate this one!

I think R&D allowances could apply, if not then there's a potential to look at separation into two assets under different treatment. Or, there's no option but to accept massively reduced annual allowance for the asset - which seriously hampers our attempts at getting me out of Corp life, and running a small business that let's me enjoy life with Mrs Sway whilst we somewhat can (she has a degenerative genetic condition, which is worsening faster than we hoped/was thought likely)...

So there's quite a lot riding on getting this right, with as little risk as possible!

Myriad seem to specialise in doing R&D capital allowance applications, with a 'no success, no fee' basis - unsure of what sort of cost that might attract though (we really are bootstrapping this, so budget is tight - but equally if it helps us get to where we want to be...).