Your financial year end approaching? Drastically cut your corporation tax bill.

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Do you use use the calendar year as your financial year. If so, time may be running out for you to use your 2019 allowance.

For every £50,000 invested in a new machine, the tax man will cut your corporation tax bill by £9,500.

Lombard AIA tweet

Lombard AIA tweet

We’re not all accountants! We’re not always aware what we can do to minimise our corporation tax bill. Our accountants don’t always know you may need another spindle.

If you are likely to make a profit in your 2019/2020 tax year, investing in a new machine could drastically reduce your cooperation tax liability.

Heard of the Annual Investment Allowance (AIA)? Also refereed to as the Capital Allowance.

For 2019 and 2020, if you purchase capital equipment, you can write down 100% of the purchase in the first year up to a maximum of £1,000,000

If you invest in a new Kafo or Lagun machining centre from TDT at a price of £300,000-£400.000. You could write down the complete purchase in your current financial year, potentially shaving off £57,000-£76,000 your corporation tax bill (at 19%). Even if you pay for the machine over 5 years on HP you can write down the full purchase price. 

Some companies still prefer to write down their machine tool purchases over many years but most SMEs prefer to write the machines down in the first year enabling them to invest further with the money saved.

Sound too good to be true, speak with your accountant or click on link below for more information.

More information from GOV.uk

More information from Lombard

 

 

Qualifying machines from TDT on short delivery.

 

Lagun have bed mills in stock and on short delivery, CLICK HERE FOR MORE INFORMATION , these machines could be in your factory before the end of the year and would qualify as capital investment for the purpose of AIA.

 

Lagun BM Series     Lagun BM RT Series

CMZ have most machines in their range in stock or in build for a quick delivery  CLICK HERE FOR MORE INFORMATION , these machines could also be in your factory before the end of the year and would qualify as capital investment for the purpose of AIA.

 

CMZ lathes logo small

     

CMZ lathe Range

 

TDT are not offering financial advice. If you think this is of interest, please check with your accountant or advisers the AIA and potential savings through write down apply to your company.
TDT are not associated with Lombard but their tweet and information they provide is relevant and a useful read

 

 

 

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