In April 2008, there will be wholesale changes to the capital allowances available on assets purchased by businesses. 

Instead of receiving first year allowances, an “Annual Investment Allowance” of £50,000 will be given, meaning that expenditure on the first £50,000 of new assets (excluding cars) will receive 100% tax relief in the year of purchase.

However, expenditure above £50,000 will only receive an allowance of 20%, which represents a reduction of 5% from the existing written down allowance available.

Therefore, businesses that are looking at large capital expenditure in the near future should consider whether it would be more beneficial to make the purchase prior to, or after 1st April 2008.

For more information and further advice on how the changes could affect your business, email janice@a4gsolutions.co.uk.

It is easier said than done, but with an apparent recession on the cards in the near future, it is worth taking note that one of the top ten reasons why businesses fail is poor cash-flow, even when the product or service being offered is fantastic.

Many small businesses suffer with their cash-flow requirements on a day-to-day basis as a result of larger businesses squeezing them on the credit terms offered, and whilst the small business owner has a small amount of protection in the way of being legally allowed to charge interest on late payments, this doesn't help an awful deal.

Before the recession hits your cash-flow, now would be an ideal time to review your business finances and discuss any borrowing requirements with your bank, as well as ensuring that your systems on collecting your debts and paying your creditors are under control.

If you would like to review and improve your business's cash-flow, then please email wes@a4gsolutions.co.uk to discuss your options.

“The more extensive a man’s knowledge of what has been done, the greater will be his power of knowing what to do”.

BENJAMIN DISRAELI