The latest 'Looking After Business' column from Clay Shaw Butler



Looking After Business - The Carmarthen Journal column by David Butler, of Clay Shaw Butler. 

It is becoming something of a theme that modern-day Budgets often throw up more questions than answers.
So it is with Chancellor George Osborne’s latest effort. The biggest question of all being: Has he done enough to help small businesses?
Here in West Wales, SMEs (small to medium-sized businesses) are vital to the local economy.
Here’s a quick review of some of the things that should (we all earnestly hope) help SMEs -
Corporation tax rates. The main rate of corporation tax is 23% from 1 April 2013. The Chancellor announced in December that the rate from 1 April 2014, which was planned to be 22%, will be reduced by an additional 1% to 21%. The main rate of corporation tax will be reduced to 20% from 1 April 2015 and unified with the small company rate.
The small company rate will therefore remain at 20%.
Annual Investment Allowance (AIA). The AIA provides a 100% deduction for the cost of plant and machinery purchased by a business up to an annual limit. The Chancellor announced in December an increase in the limit from £25,000 to £250,000 for a period of two years from 1 January 2013.
The main point to appreciate is that expenditure incurred after 31 December 2012 may give a full tax write-off, but expenditure incurred before 1 January 2013 may not give this result. Also, note that it may pay to defer the expenditure until after the end of your current accounting period as the full £250,000 AIA may be available.
Capital allowances and cars. A 100% first year allowance (FYA) is available on new low emission cars purchased by a business. There are more than 150 models that can be purchased in 2012/13 which qualify for a 100% FYA. If the purchase is deferred to 2013/14, the number falls to less than 30.
As a diary note, it is probably worth making a note to speak to your financial advisor regarding any possible change of assets in the approach to the end of 2014.
The team at Clay Shaw Butler are on Twitter. Look for @clayshawbutler. We have nearly 400 followers, so join the club!
The team at Clay Shaw Butler can be contacted on 01267 228500 or through the website at www.clayshawbutler.com

Comments

Post a Comment

Popular posts from this blog

Former Gower MP Gareth Wardell the guest speaker at Llanelli Rotary Club

Image
Former Gower MP Gareth Wardell was the guest speaker at the weekly meeting of Llanelli Rotary Club held at the Stradey Park Hotel. Mr Wardell gave an illuminating address, weaving comparisons between his job as a politician and his late father's job as a Tumble barber. It was an amusing, highly-entertaining and thought-provoking address. Mr Wardell, now 69, won the Gower constituency seat in a Parliamentary by-election in 1982. The Labour MP held the seat until his retirement in 1997. He now works as a public affairs consultant in Wales. Mr Wardell's Parliamentary term was largely in opposition to Margaret Thatcher's Conservative Government. But his did make a significant contribution by being the youngest MP to chair the Welsh Affairs Select Committee. Mr Wardell recognised that in the 'fame stakes' he may have played second fiddle to his father, Jack, who was one of the UK's oldest barbers and who cut and styled hair for almost 80 years. Jac
Read more

'Class of 1980' from Burry Port enjoy reunion

Image
There was a big class reunion held in Burry Port at the weekend. Members of the Class of 1980 from Porth Tywyn (Burry Port junior) School got together at The Coasting Pilot pub. The reunion was organised by Christine Rees and same 22 members of the original class of 28 turn up to discuss their old schooldays. One ‘Class of 1980’ member was Burry Port businessman Owain Davies. He said: “We all have very happy memories of our time in school. We had a fantastic teacher in Mr Heddwyn Jones, who now lives in Four Roads. “We were very fortunate to have the same teacher for three years and we were a very happy class. Mr Jones was an inspiring teacher and we all got on every well and we are all still good friends. “Heather Thomas (now Heather Osmond) made it from Surrey, but she was trumped by Gail Morris, who flew in from Ohio in the United States for the reunion. “It was a fantastic evening at the Coasting Pilot with good food, good wine and good company. We even recreated the class
Read more

Lauryn Davey is making her mark in athletics - but needs sponsors

Image
Ammanford-based Lauryn Davey is making a major mark in the world of Welsh athletics. At just 16, she is the best all-round athlete of her age in Wales. She's chalking up Welsh championship victories and has been honoured by her club, the Carmarthen Harriers. Lauryn's been earmarked as a future international star, but knows the road to the big championships is difficult, demanding and expensive. Ammanford businessman and well-known comic entertainer Phil Evans has launched a campaign to get cash backers for Lauryn's athletics career. "Everyone in the area is hugely proud of her achievements in athletics to date," said Phil. "But we also want to see her go on and do bigger and better things. "Together with some friends, I am helping find ways of generating much-needed sponsorship cash for Lauryn. "She has massive potential to succeed on the international stage and I am sure a little bit of financial help will help to smooth her
Read more