Annual Investment Allowance
Have you heard people talking about AIA and WDA and wondered what on earth they are on about?
Well, they're schemes that relate to tax relief and enable businesses to offset purchases against their annual profit and only pay tax on the remaining amount.
Take advantage of your Annual Investment Allowance (AIA), spend up to £50,000
on plant and machinery (including vans), and write off this expenditure
against your taxable profits. Anything that you spend on your qualifying
purchases can be written off, up to the AIA limit.
What’s more, for the current tax year only, the Government has introduced WDA a first year allowance of 40% for
any qualifying expenditure over the £50,000 AIA. So if you use up your AIA, you can still write off an additional 40%
of anything you spend over the £50,000 AIA threshold!
But don’t delay, as these tax allowances only apply during the current tax
year. Act before the end of March 2010 so you don’t miss out.
Follow the links below for a straightforward guide to these allowances or click here to go straight to the Mercedes-Benz Vans tax savings calculator.