All businesses have assets, from property, including any fixtures and fittings, to plant and equipment used in the business, through to patents and other intangibles, and not forgetting the workforce itself. Assets depreciate, they cost money to maintain and businesses are being encouraged to use valuable cash to replace old assets even though some of them cannot be seen, but assets are crucial to a business.
Tax reliefs are available for most tangible assets. Unfortunately, many of the reliefs for traditional assets have become less generous in recent years, making it more important to ensure that they are properly categorised for tax purposes.
Many of the most generous tax reliefs are available to businesses investing in and creating intangible assets.
These enhanced reliefs include cash tax benefits for:
There is also a reduced tax rate that can be applied to profits of businesses exploiting self-generated patented technology, the Patent Box.
Many businesses say people are their biggest asset. Even though they do not sit on the balance sheet, staff often represent the biggest recurring business cost.Payroll tax rules, national insurance and employment law issues can mean any problems with process can result in large exposures for the business.
You can save money and reduce tax/national insurance contributions on car allowances through some simple structuring and good record keeping.People tend to underestimate the costs of sending staff overseas by 50%. This can severely impact the profitability of overseas work.
Companies who have short-term visitors to the UK can still have PAYE obligations even when they remain on an overseas payroll.