Inflation has crept in to each and every business over the past six months with costs rising for raw materials, fuel and utilities. On top of this interests rate have risen from 0.1% to 0.75% making borrowing more expensive but with hope that the increase can challenge inflation.
Key Issues For Businesses
Rising cost of borrowing
Rising cost of raw materials
Rising cost of energy
Rising cost in wages
Rising cost with EVERYTHING!
Whether the business in question is in manufacturing, hospitality, care or real estate, inflation will have impacted the bottom line and in turn could slow investment and growth of key sectors over the coming months to years.
What Can Be Done to Beat Inflation?
Most businesses that are feeling the pinch of inflation will no doubt own their commercial premises from which the primary trade is conducted from, and this investment (no matter how long ago it was) could provide businesses with a huge cash injection.
The average amount of money saved per sector per property:
Manufacturing = £15,000
Hospitality = £28,000
Care = £33,500
Office = £30,000
(Assuming a £500,000 purchase price)
The above is achieved by using capital allowances which allows qualifying plant within a commercial property to be claimed as an expense by the business to achieve lower taxable profits. Lower taxable profits mean less tax, enhanced cashflow, increased capital reserves and the best bit, a possible cash lump sum from the overpayment of taxes in the prior tax year.
Simply put, if you purchased a commercial property you purchased more than bricks and mortar. You purchased all of the systems within such as heating, electrical, lighting, plumbing, alarm and communications, the list goes on. These systems all attract tax relief under capital allowances and are generally excepted as plant and machinery in nearly all commercial properties.
Over 90% of commercial property owners have not made use of this vital tax incentive and are currently overpaying tax year on year. With the rising pressure of inflation, now is the time make your claim.
Check if your business/property qualifies for capital allowances and an average saving of £30,000 here >>> https://www.jamesnazir.com/doiqualify