Capital Allowances Advice for Accountants
We spend a large amount of our time advising the advisors. Capital Allowances on fixtures is a highly specialised niche area of tax with over a 100 years’ worth of case law to contend with. Furthermore, providing effective Capital Allowances advice requires a marriage of disparate skills from taxation, accounting and quantity surveying that you simply won’t find in any but the very largest of accounting firms in the country (KPMG, PWC etc).
STax combines all these skillsets required to provide robust Capital Allowances advice under one roof, making us perfectly positioned to assist your clients’ in claiming their full entitlement to Capital Allowances. We are also keenly focused on ensuring your clients compliance with all Capital Allowances legislation, especially when a building change hands.
We currently work with a large proportion of the general practice firms in the UK to assist them in meet their clients’ Capital Allowances needs.
How can I bring Capital Allowances up with my clients without losing face?
No one likes to admit they don’t know everything however doing so in a professional environment is nothing to be ashamed of, many would go further to say identifying the boundaries of competency and making provision for external expertise is part of the duty of care general practice firms owe to their clients.
As you are aware accounting and tax are two distinct disciplines. Despite the best efforts of the ONS we still have an extremely complex system of taxes underpinned by a mass of ever growing legislation. No individual or firm could be an authority on all of it.
Here at STax we work in conjunction with accountants to provide tax advice in one of the more niche areas, Capital Allowances. In much the same way that a medical GP might refer a patient to a heart specialist the role of the accountant is to identify when a need for specialist advice has arisen. Every firm should have a panel of different discipline specialists they can turn to when client’s requirements go beyond the firm’s core competencies. Some would go further to say accountants are under a duty of care to ensure this is the case.
We work with hundreds of firms of accountants across the UK to assist them and their clients to ensure they claim all their due Capital allowances on fixtures. We are ever mindful that whilst doing this we ensure your clients compliance with all capital Allowances legislation and upholding your firms duty of care.
How can STax assist us with Capital Allowances?
The firms we have worked with have found our advice particularly useful in the following areas.
Capital Allowances – Fixtures:
Many of your clients may be sitting on a reservoir of untapped tax relief from the Capital Allowances on fixtures in their property. Whilst you will be picking up on expenditure that can be claimed when you see the invoices, many items may be mislabelled or hidden in general/ambiguous descriptions e.g. building work £500,000. We are often instructed to review the expenditure of major renovation works to make sure that all eligible expenditure is claimed.
Furthermore, in many situations’ taxpayers can claim Capital Allowance as a proportion of the purchase consideration of a building. This is deemed as having been for the items of plant that were in place at the time, even if the building was purchased many years ago. This involves undertaking a full survey of the building and needs to be processed in accordance with the guidelines laid down by HMRC and the VOA. This can take a couple of months to complete but can deliver as much as 35% of the cost of the property in allowances (this percentage will vary a lot between different buildings and industries).
We only charge on a performance basis for this work to make sure that your clients can only ever benefit from our involvement. All our advice is guaranteed on success. In the unlikely event that HMRC or the VOA enquire into our findings all questions and negotiations will be handled by us at no extra cost to the client.
Please click here for more general capital allowances information.
Transference of Capital Allowances fixtures:
There has been a significant shift in how Capital Allowances on fixtures should be handled during the conveyance of a property. If this legislation is not addressed correctly it can have a huge financial impact on both parties.
We can provide advice on not only complying with the legislation and completion of conveyance related documentation (CPSE’s, S198 elections etc) but also strategic assistance in the negotiation process, to help deliver the best possible outcome for your clients.
CPD training – Capital Allowances on Fixtures
We believe that knowledge is power in this world and we want our partners to thrive not just survive. To this end, we are happy to conduct CPD lectures and training for you and your team be at as part of our webinar program or even a visit to your offices. This training for you and your staff will allow the effective identification of areas of risk & opportunity, ensure compliance with the Capital Allowances Act and clock up a few more CPD points at the same time!
If you have a specific case you want to get some expert help with or simply want to find out more, please don’t hesitate to contact us today.