Hofmann Megaplan offers advice about how to make the most of your tax allowance as a garage

 

Introduced in 2008, AIA is an allowance for tools and equipment which allows a business write off 100% of qualifying capital expenditure against taxable profits for the same period. AIA is an incentive for a business to invest because it accelerates the tax relief available in the year of purchase, rather than over several years, helping cash flow and enhancing business growth.

 

The super-deduction tax break was introduced in the 2021 budget. It allows you to claim 130% of what you spend on qualifying equipment for your business against taxable profits until 31 March 2023. Super-deduction provides 25p off company tax bills for every pound of qualifying spending on plant and machinery.

 

In addition to AIA and the super-deduction you can also access the new 50% first-year Allowance and benefit from the Structures & Building Allowance for investments until 30 September 2026. Click here for more information.

 

Depending on your expenditure on tools and garage machinery you could claim up to 130% against your taxable profit. For example, if you spend £10,000 on qualifying tools and garage machinery, your company can deduct £13,000.

 

 

If you are looking to grow your garage business in 2022 you could benefit from one or more of the capital allowances available to you. At Hofmann Megaplan, we want to support your decision making by offering you sound advice and a bespoke approach to machine purchases and garage enhancements tailored to your needs and budget.