IT tax allowance to expire soon
Small businesses must buy new computer and communications equipment now if they are to benefit from the 100% tax allowance available on the technology.
George Bull, of Baker Tilly, is reported saying that a typical small business paying 19% corporation tax ‘enjoys a £19 allowance against its tax liability for every £100 of technology capital expenditure.’
But the credit runs out at the end of March, so from 1 April, the allowance would drop to £4.75 in the first year for every £100 of expenditure.
Gordon Brown might use his Budget speech to reinstate the allowance, however, as an antidote to some of the bad news he is bound to release.