One of the parts of my business skills workshops that people enjoy the most is a simple exercise called 'match the expense to the tax return'.
OK - so it's not exactly a catchy title for a game, but it's more fun than it sounds.
This financial year the tax people (HMRC) have changed a few of the guidelines for small businesses, and even some quite hardened freelances are apparently unaware of the changes.
The good news is that there is a £50K allowance for small businesses to cover capital equipment this year. That's different from previous years, where you've only been able to put 50% of the cost of a capital item down against tax.
That makes this rather a good year to buy kit, presuming you have any cash at all what with the credit crisis.
In fact that's such good news I hereby predict that the rules will change again within a year or so. Let's see.
HMRC have also clarified some of the allowances if you use your home for part of your business. Everyone knows about heating and lighting (percentage of), but there are some extras.
Read the updated guidance here - and make sure you bring it up with your accountant!
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