Asset Management – if you don’t understand the term then you are more than likely paying too much tax!
Many small businesses fail to maintain a fixed asset register, it’s difficult to trace fixed assets acquired throughout the year without one.
Potential capital allowance claims could be missed which results in you paying more in tax. Capital allowance definition:
“A capital allowance is an expenditure a U.K. or Irish business may claim against its taxable profit. Capital allowances may be claimed on most assets purchased for use in the business, ranging from equipment and research costs to expenses for building renovations.”
Accurate record-keeping is key, as a business owner you don’t want to pay more tax than you have to, taking a little time to put a process in place pays in the long run!
Ask your accountant to set one up for you!
Have you got an asset register?