Why hasn’t my Accountant done a capital allowance claim?
If you own a commercial property, then it’s important to know about Embedded Capital Allowances. Embedded Capital Allowances are a form of tax relief designed to incentivise business owners like you to improve their commercial properties. Embedded Capital Allowances allow you to deduct the cost of certain types of expenditure on your commercial property from your taxable profits. Unfortunately, many business owners don’t claim them, and as a result, miss out on valuable tax relief or a tax refund.
Who can claim Capital Allowances?
Almost all commercial property owned by an individual, partnership, or company will qualify for a capital allowance claim. If you own a commercial property and pay tax in the UK then you can claim.
Won’t my Accountant already have done this for me?
Not necessarily – a successful capital allowance claim requires an effective combination of technical surveying skills and specialist knowledge of taxation statute and case law. Many accountants will not be aware of the extent of the items which can be successfully claimed for. If your accountant does not do a capital allowance claim for you it does not mean they are bad at their job or are being negligent, it just means that they are concentrating on the nuts and bolts of your accounts.
So why hasn’t my accountant done a capital allowance claim?
Capital Allowances are a very specialist area and the best accountants in the business may not know a great deal about them. Your accountant will be busy sorting your payroll, tax returns, company accounts, amortisation, journals, credits, debits and more. They’re only human and cannot know anything, so don’t be surprised if Capital Allowances have not been mentioned to you.
Often, items of expenditure are not picked up by accounting processes because they were embedded in the commercial property when you bought it. There are several reasons why you accountant, as good as they are, will not have picked this up. Accountants are often too busy to do a Capital Allowance claim With all the other demands on their time, such as those mentioned above, it’s not surprising that many accountants simply don’t have the time to do a capital allowance claim. After all, a capital allowance claim can be quite complex and time-consuming. It’s not their fault – they’re just too busy. But, if your accountant hasn’t done a capital allowance claim, then you could be paying more tax than you should. That’s where we come in.
Capital allowance claims can be complex
Accountants may find that Embedded Capital Allowance claims are quite complex, which is one of the reasons why they are frequently not used. Capital Allowance claims require specialist knowledge and experience, and many accountants simply don’t have this. At Property Tax Refund Centre, we have a team of experts who are experienced in Embedded Capital Allowance claims. We can help you to maximize your tax relief or refund and get the most from your claim.
A specialist site visit is required
To get the most out of a claim and to ensure that any HMRC enquiries can be dealt with a full visit of a property is required. This is a specialist service and not one that your accountant would normally undertake. At Property Tax Refund Centre, we have a team of specialists who can carry out the site visit. This will allow us to identify all the items of expenditure that are eligible for Capital Allowances.
How do I claim?
If your accountant hasn’t done a Capital Allowance claim, don’t worry. You can still get the most from your Embedded Capital Allowance claim by working with us at Property Tax Refund Centre. We have the knowledge and experience to help you maximize your tax relief and get the most from your claim.
The first stage is a consultation with one of our team which can be in person, over the phone or online. If we agree that it is likely you will be able to make a claim, then we will make an appointment for a team member to come and visit the property. They will itemise every fixture and fitting which qualifies for an allowance and send the results to a tax accountant.
They will prepare a report for your accountant to submit to HMRC. The process takes 8 – 12 weeks. You pay 5% of the allowances found and you only pay on success.
How will my Accountant react to me wanting to do this?
Some accountants can be suspicious at first, but we are always open and collaborative with accountants and only want to work with them to ensure the best outcome for their clients. In fact, some of our best introducers are accountants who know that their clients could claim Embedded Capital Allowances but understand that they do not have the specialist time or knowledge to make the claim themselves.
How do I get started? Just contact us however you feel most comfortable, and we will be in touch to get the ball rolling.