Finding the unseen tax benefit on Independence Day
When the COVID-19 crisis has passed, and when we will all look back at it; we will all remember how we felt when we were given our orders by the PM:
"From this evening I must give the British people a very simple instruction - you must stay at home."
I still shudder reading it, and remember the sense of disquiet at the un-natural loss of liberty that we all faced over the next few months. It was an awful thing to be told; but it did feel necessary.
Those of you in the hospitality trade must have felt a different set of feelings wash over you. Foreboding, dread, and a fear for where it would take your livelihoods and those staff which you have a responsibility for. "The Great Quietening" is now very close to passing. Now, on July 4 you must all look toward the "The Great Opening", or Independence Day, as some wags have taken to calling it. While July 4 will undoubtedly bring with it excitement, anxiety or an even mix of both; it can also bring with it silver linings and unseen benefits.
Did you know that the improvements and changes that you are making bring with them a tax benefit? Did you know that items which you may be thinking about adding to your premises, such as screens for bars or reception desks, hand sanitiser stations, new signage and posts and rope barriers, all come with an allowance to put against your tax bill?
These are called capital allowances and we love them. We help commercial property owners claim back tax, or get a saving on a future tax bill by uncovering allowances for improvements they've made to their property.
It's not a weird, dodgy, convoluted, it's simply an incentive for business owners to improve their premises to make them great homes for your business.
In the average hotel we'd estimate that there would be allowances equal to 35% of the value of your property.
If the hotel is worth £500,000 that's £175,000 of allowances. If you pay tax as an individual they could be in line for a refund or future saving of £70,000. If it’s a refund that can be in your pocket within 3 months.
If you would like to arrange a free, no obligation call or meeting just visit www.rg-ca.co.uk.
We wish you the best of luck on Independence Day.
This advice was supplied by Rufus & George
