THE ANNUAL INVESTMENT ALLOWANCE TAX-RELIEF SCHEME EXTENDED
A temporary increase in the Annual Investment Allowance (AIA) to £1 million was originally due to revert to £200,000 on 1 January 2021 but the Government has now extended this deadline to 1 January 2022 owing to the pandemic.
The AIA gives a welcome boost to cashflow for businesses which have invested in capital equipment, plant and machinery. Businesses can take advantage of the Government scheme and claim up to £1 million in same-year tax relief through the AIA for capital investments in plant and machinery assets until 1 January 2022.
How does my year end affect the way the allowance is calculated?
If you have a 31st December 2021 year end, the calculation is straightforward as your tax return period will coincide with the end of the increased AIA allowance. But if you have a 2022 year end the calculation will need to take into account the period of temporary increase and subsequently decreased AIA allowance. Your accountant will be able to advise you accordingly.
Do I qualify for the allowance?
Most businesses are eligible for the AIA, but there are exceptions where partnerships comprising individuals and companies are involved. If in doubt, speak to your accountant.
What type of assets can I claim for?
· Trucks and vans
· Plant and machinery
· Cranes and diggers
· Agricultural machinery
· Building fixtures and fittings
· Lathes and tooling
· Office equipment
· Computers and software
When can I claim?
You can only claim AIA in the period you bought the item. The Government defines this as:
· when you signed the contract, if payment is due within less than 4 months
· when payment’s due, if it’s due more than 4 months later
If you buy something under a hire purchase contract you can claim for the payments you have not made when you start using the item. You cannot claim on the interest payments. If your business closes you cannot claim AIA for items bought in the final accounting period.
How do I find out more?
To find out more about AIA and how it can help your business please contact us on 01908 487 561 and speak to a member of our sales team. Or request a call back here.
Full details about the AIA scheme are available on the www.gov.co.uk website.
-
-
All round financial solutions
Scania Financial Services has the flexibility to provide funding for a wide range of assets, as Sales Manager Dan Spencer explains. -
P. R. Shuttleworth Haulage Limited
Paul Shuttleworth switched to C&C Insurance Brokers Limited three years ago, saving over £12,500. With their exceptional service, they remain a key partner. -
Service excellence is the jewel in the crown for Richard King Haulage Limited
Haydock Commercials & SFS closely collaborate, tailoring bespoke financial packages for operators like Richard King, meeting their business needs. -
Can-do financial flexibility is the key for M. F. Quinn Limited
SFS and Keltruck, work collaboratively to provide a range of bespoke financial packages specifically tailored to the individual needs of Keltruck's customers. -
Understanding Asset Finance
Asset finance is a financial tool that allows businesses to acquire and manage assets without making an upfront payment. -
Larkins Transport Limited grows with Scania Financial Services
Droitwich, Worcestershire-based Larkins Transport Limited is a specialist haulier providing a range of tanker services nationwide. -
Baking on gas: Jacksons and Scania Financial Services
Jacksons has taken a major step forward in the decarbonisation of its transport fleet with the acquisition of seven compressed natural gas (CNG) Scania Trucks. -
GRASSMEN plough on with Scania Financial Services
GRASSMEN has taken delivery of a Scania 660S tag-axle heavy haulage prime mover facilitated by Scania Financial Services. -
Hawthorns Logistics' Lifesaver Trailer
While many transport operators use their trailers to promote various products and services, few carry a more important message than this triaxle reefer. -
Pumped up for success
DXB group has seen DXB Integrate take delivery of its first pump set financed on a five year hire purchase agreement by Scania Financial Services. -
RJM Commercials Ltd
Scania Financial Services helped RJM Commercials Ltd fund their 25 strong fleet of V8 tractor units, supplied by TruckEast to support their business growth.