Chat with us, powered by LiveChat

Latest News

Winners – New Business of the Year

HMA Tax are very pleased to have won the coveted New Business award at the Black Country Chamber of Commerce Awards 2017. This award recognises the excellent service we provide to our clients and the exceptional growth we have achieved whilst helping businesses and individuals identify over £60m in allowances. We are extremely grateful for this award and are delighted to add this to our shelf.

The competition in this category was very strong and we are proud that our customer service record and remarkable 100% approval rate with HMRC was recognised by the judges.

Tom Meredith, Managing Director, commented:

“We have an excellent team here at HMA Tax and I am proud that together we are able to offer such an incredibly valuable service to owners of commercial property across the UK. To come out on top of what was a very competitive category is very flattering”.

HMA Tax help owners of Commercial Property identified previously unclaimed capital allowances and receive tax refunds.

The Process of Claiming Embedded Capital Allowances

Claiming Embedded Capital Allowances is simple, straightforward and stress-free. Our expert team work hard to ensure that you receive the tax relief you are entitled to in a way that requires very little input from our clients.

Many commercial property owners have the potential to claim Embedded Capital Allowances on their property, however some may be put off by the idea of the claiming process. Claiming is easy and straightforward, because our specialists do the difficult bit for you.

We only need an hour of your time to gather information and talk you through the process, then we do the rest. In order to start your claim, we’ll need to talk to your Accountant and get some information from the past few years and we’ll request a copy of the information land registry holds for the property. Again, this doesn’t take long and only relates to information that is needed for a sucessful claim. Once we have identified whether you have a claim, we’ll send out one of our friendly surveyors to look around your property and identify unclaimed items which qualify for tax relief. Based upon the findings from our surveyor, a specialist Tax Accountant will complete a detailed report for approval by HMRC in order to quantify the level of allowances your property will qualify for.

On average, it takes only 8 weeks from our initial meeting to you receiving your relief from HMRC. This relief often adds up to tens of thousands of pounds, a positive impact on any businesses’ cash flow. If you’re wondering whether this is all worthwhile, take our client David from Arctic Spas. When we first met David, he was sceptical about whether he’d have the time to make a Capital Allowance claim. We were able to identify over £127,000 of allowances in his commercial property!

If you have an hour to spare, get in touch to arrange a meeting with one of our specialists who can begin the straightforward process of identifying your unclaimed tax refunds.

Furnished Holiday Lettings

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for specific tax purposes. This begs the question, how can commercial property owners benefit from having a FHL?

Individuals, partnerships, trustees and companies who let furnished holiday accommodation situated within the UK or elsewhere in the EEA can highly benefit from having a FHL. HMRC recently changed their guidance on the scheme. Landlords of furnished holiday lettings are not affected by the new rules introduced this tax year that are gradually restricting tax relief on mortgage costs for residential properties to the basic rate of tax. This increases the tax benefit of the scheme, allowing owners to claim back a substantial amount of allowances on embedded items within the property.

In order to qualify as a furnished holiday letting, you must meet the following criteria:

  • Your property must be let on a commercial basis with a view to the realisation of profits.
  • Second homes or properties that are only let occasionally or to family and friends do not qualify.
  • Your property must be located in the UK, or in a country within the EEA.
  • Your property must be available for commercial letting at commercial rates for at least 30 weeks (210 days) per year.
  • Your property must be let for at least 15 weeks (105 days) per year and home owners should be able to demonstrate the income from these lettings.
  • Your property must not be used for more than 155 days for longer term occupation (i.e. a continuous period of more than 31 days).

Where there are a number of furnished holiday letting properties in a business, it is possible to average the days of lettings for the purposes of qualifying for the 15 weeks threshold.

There is a special period of grace election which allows homeowners to treat a year as a qualifying year for the purposes of the furnished holiday let rules where they genuinely intended to meet the occupancy threshold but were unable to do so subject to a number of qualifying conditions. Where the qualifying conditions are not met during the relevant period, the furnished holiday letting rules do not apply for that tax year or accounting period. In that situation, the normal property income rules will apply for that tax year or accounting period.

To identify whether your holiday let can qualify for a claim, get in touch with one of our specialists to arrange a free consultation.

 

 

 

 

Different types of Capital Allowances

Whilst we always state the importance of commercial property owners making a Capital Allowance claim on their property, owners must be aware of the different types of Capital Allowances in order to make a successful claim.

Writing-down Allowance

Expenditure that exceeds the annual amount claimed for the cost of a capital item may be eligible for a writing-down allowance. This type of allowance can be used if you’ve already claimed Annual Investment Allowance on items worth a total of more than the AIA amount and/or if the item doesn’t qualify for AIA, for example cars or items you owned before you used them in your business. Writing-down allowances are available when you deduct a percentage of the value of an item from your profits each year, and in most cases, the value is what you paid for the item. To claim this type of allowance, group the items you’ve bought into ‘pools’ based on the percentage rate they qualify for. When you know the rate for your items, work out how much you can claim and deduct it from your profits before tax on your tax return. The amount left in each pool becomes the starting balance for the next accounting period.

AIA Capital Allowance

From April 2008, businesses have been able to claim back a specific amount each year for the purchase of plant and machinery. Each year, claims can be made up to a specified amount, and if possible, you can claim 100% of the cost of plant and machinery if the year that you buy it was a first year allowance. This applies to equipment, machinery and to work vans, but not cars. The maximum amount that can be claimed varies from year to year, but is currently £200,000 from 1 January 2016 for a twelve month period. It is important to note that you can only use your full Annual Investment Allowance in the year that you buy the asset.

Small Pools Allowance

If one of your pools gets down to less than £1,000 (or less before you work out the writing-down allowance) in value after you have used your Annual Investment Allowances for the year, you can claim all of the remaining amount at once as a Small Pools Allowance. You can claim this instead of claiming a writing-down allowance.

First Year Allowance (FYA)

This is fairly similar to the Annual Investment Allowance, as you can claim 100% of the cost of specific assets in the tax year that you buy them. These include:

  • New zero-emission goods vehicles
  • New plant and machinery for use in designated areas within certain enterprise zones
  • Certain new energy-saving and water efficient equipment
  • New cars with carbon dioxide emissions of 75gms per km or less
  • Specific new vehicle gas refuelling equipment

100% first year allowances enable companies to deduct the entire cost of the purchase from the trading profit in the accounting period during which the purchase was made. However, there are restrictions on claiming FYA, since they cannot be claimed where an asset has been received as a gift, and/or an asset has been used privately prior to being used by the business, or where the asset has been used as a sole prop before incorporating and moving into the new business.

Business Premises Renovation Allowance

This type of allowance was introduced to give an incentive to bring unused properties back into use. BPRA gives an initial allowance of 100% for expenditure on converting or renovating unused business premises in a disadvantaged area. For example, £100,000 spent on refurbishing quality unused premises generates a tax saving of £40,000 in the year of expenditure for a 40% taxpayer. The scheme has been extended to April 2017 and the basic principle is that the property must be within the disadvantaged area, must have been unused for 12 months prior to work starting and must be commercial premises.

Special Rate expenditure

Specific equipment can qualify for this special rate, currently at 8% per year. These types of items would include:

  • Parts of a building considered integral, known as ‘integral features’
  • Items with a long life
  • Thermal insulation of buildings
  • Cars with CO2 emissions of more than 130f/km

For more information on the different types of Capital Allowances and to see what type you can claim on, get in touch with one of our specialists.

How Landlords Can Avoid Missing out on Tax Relief

If you’re a landlord, you’ll likely be aware of the benefits of a commercial to residential conversion, and may be considering this option for your property. If this is the case, action must be taken in order to avoid missing out on substantial tax relief in the form of Capital Allowances.

These allowances are available to owners of commercial property, which is why a claim must be made before the property becomes residential. In recent years, many landlords are beginning to take advantage of the government’s decision to make permitted development rights for office-to-residential conversions permanent. Whilst landlords are in the process of making this conversion, there is still time to get in touch with Capital Allowance specialists to investigate whether allowances can be claimed within the property whilst it is still classed as commercial.

Capital Allowances are based upon items that are considered part of the property which are eligible for tax relief. These items would include security systems, heating systems, toilet facilities and more. The amount that can be claimed would typically be around 30% of the original purchase price for office  buildings. Specialists are required to make a claim because they will already have a qualified team of chartered surveyors and tax advisors, as well as a detailed knowledge of the HMRC guidelines.

Allan Mannion, Business Development Director at Capital Allowance specialists Headley Meredith Associates explains:

“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest expense, they are rarely aware of the opportunity for tax relief that comes with it.

In the case of commercial property, you need a specialist team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by a Capital Allowance expert.”

Claims need to be made before or at the point of sale, and before work begins on the property. Once the property becomes residential, all allowances will be lost and there will no longer be a chance to make a claim. The Government have tightened their rules on Capital Allowances, which makes it vital for commercial property owners to employ Capital Allowance specialists to provide all the necessary legal advice and process claims on their behalf. Specialists can survey the property and prepare a report within 5 weeks, which greatly speeds up the rate at which the landlord can receive the allowances.

Owner of Arctic Spas Makes Substantial Tax Claim

There was a lot to celebrate at the Arctic Spas headquarters recently as owner David Martin was able to claim back thousands of pounds in tax relief on his Arctic Spas showroom.

These tax refunds are also known as Capital Allowances, which are a form of tax relief available to UK tax paying commercial property owners, such as David. These allowances were claimed on items that were considered part of the building, including air conditioning, heating systems, toilet facilities, kitchen fittings and more.

Much to the Kidderminster based owner’s surprise, he received a substantial amount of tax refunds:

“I couldn’t believe that my accountant didn’t do this, and when I found out, I was able to claim back a substantial amount of tax benefits. It turned out that all I needed was a specialist team to identify certain embedded items.”

Similarly to David, many commercial property owners believe that their accountant will deal with Capital Allowance claims, however this is often not the case because accountants typically do not have the specialist team in place that are required to identify allowances, which is why commercial property owners need to employ Capital Allowance specialists to process these claims for them.

Allan Mannion, Business Development Director at Capital Allowance specialists Headley Meredith Associates explains:

“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it.

In the case of commercial property, you need a specialist team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by an Embedded Capital Allowance expert.”

Many more commercial property owners can claim for tax allowances, just as David did. David and his team are certainly reaping the rewards!

ENDS

Word count- 327

 

Why Veterinary Surgery Owners Can Claim Capital Allowances

Veterinary surgery owners may be interested to know that they have the potential to claim tax refunds on items within their property, also known as Capital Allowances, and are based upon items that are considered part of the commercial building.

These refunds are available to UK tax paying commercial property owners, such as veterinary surgery owners who haven’t made a previous claim on their property. The reason why many owners are unaware of their potential to claim is because they often expect their accountants to have already made a Capital Allowance claim for them, however this is very unlikely due to the specialist nature of the work involved and the requirement for a team of chartered surveyors and chartered tax advisors.

The type of items that could be claimed on within a veterinary surgery would include air conditioning, advanced electrical equipment, toilet facilities and more, all which are essential to the running of the business.

Allan Mannion, Business Development Director at Capital Allowance specialists Headley Meredith Associates explains:

“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it.

In the case of commercial property, you need a specialist team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by an Embedded Capital Allowance expert.”

The amount of tax refunds available may surprise some, as in most cases, around 25% of the original purchase price of the building would be identified as allowances, which means if a building was bought for £500k there would be around £125k of identified allowances, resulting in a substantial tax refund to the veterinary surgery owner.

ENDS

Word count- 316

What are Embedded Capital Allowances?

It is a little known fact that commercial property owners can claim thousands of pounds in tax relief from their property in the form of Embedded Capital Allowances. Embedded items are inherent in the property, and much to some people’s surprise, range from air conditioning and security systems to kitchen and toilet fittings, which means there can be a lot of tax relief on a great deal of items.

David Martin, owner of Arctic Spas, explains his surprise in finding that he could claim:

“I couldn’t believe that my accountant didn’t do this, and when I found out, I was able to claim back a substantial amount of tax benefits. It turned out that all I needed was a specialist team to identify certain embedded items.”

It is estimated that nearly 80% of these allowances are yet to be claimed, which means there are many commercial property owners unnecessarily missing out on substantial tax refunds due to the complexity of the subject. Claiming these allowances is supported by HMRC who recently said:

“You can claim Capital Allowances on items that you keep to use in your business- these are known as ‘plant and machinery’. In most cases, you can deduct the full cost of these items from your profits before tax.”

Allan Mannion, Business Development Director at Capital Allowance specialists Headley Meredith Associates explains:

“One of the strangest aspects of this subject is that whilst the commercial property a business or individual owns is quite likely to be their highest single expense, they are rarely aware of the opportunity for tax relief that comes with it.

In the case of commercial property, you need a specialist team to determine the qualifying items embedded in the property, an understanding of how to use complex HMRC formula and an understanding of the complex tax rules. All of those skills can be applied by a Capital Allowance expert.”

The amount that can be claimed would surprise some, for example, the typical claim would be around 25% of the original purchase value of the property, which represents £125k of allowances in a £500k property.

ENDS

Word count- 350

 

Dentist Surgery Owners Entitled to Substantial Tax Relief

Dentists are becoming increasingly aware of their right to claim Embedded Capital Allowances on their properties and the sizeable tax refunds such claims can return. Dentists across the UK are receiving unexpected tax refunds from HMRC for items they haven’t yet claimed for.

It’s a common misconception that a dentist’s accountant will have claimed these allowances already as the process actually requires a report authored by a chartered surveyor and a specialist chartered tax advisor.

The type of items that have often gone unclaimed include air conditioning, surgery equipment, specialised lighting, heating systems, toilet facilities and more. These are items often embedded in the surgery, forming part of its overall value when purchased or when refurbishments are carried out. A specialist team is required to establish which items have not been claimed for and their value.

A typical claim would be around 25% of the original purchase value of the property, which represents £125k of allowances in a £500k property. Claims with reputable specialists are always on a contingency basis and you should never be charged upfront or for an unsuccessful claim.

Tom Meredith, Managing Director at Capital Allowance specialists Headley Meredith Associates explains:

“Dentists are often unaware of the potential their surgery holds for tax relief, since many believe their accountant will have claimed the relief. This is why we work closely with accountants across the UK to ensure the maximum tax relief available is claimed for property owners.

It is always worth finding out whether you’re entitled to allowances, because in many cases, commercial property owners discover that they have been sitting on thousands of pounds in tax relief, and are only charged a small fee once allowances are identified.”

ENDS

Word count- 282

Professional Dentistry London

As Capital Allowance specialists, we look forward to meeting as many commercial property owners as possible, which is why we always take the opportunity to attend exhibitions. So when the chance to attend the Professional Dentistry exhibition arose again, we knew this would be the perfect chance to introduce our services to the many dental professionals who could benefit from a Capital Allowance claim.

After the success of the Professional Dentistry exhibition in Glasgow last year, we knew that the same exhibition in London will prove to be just as interesting, allowing us to meet dental professionals within the city whose practice could be holding thousands of pounds in allowances. One of the key benefits of these exhibitions is the ability to thoroughly explain our services in person, and show dental practice owners how and why they can claim these allowances. In the past, many dental surgery owners have been surprised at just how much tax relief they are entitled to, which is why it is so important for professionals to identify a potential claim, especially since there is no risk to finding out since we only charge a fee once allowances have been successfully identified and accepted by HMRC.

Our specialist (and friendly) team will be there on Friday and Saturday at stand 472 to answer any Capital Allowance related questions, whether you’re in the process of making a claim, are considering making a claim or are simply interested in our services, please do not hesitate to approach us and we will endeavour to answer any questions you may have. We look forward to seeing you there!