Capital Allowances & Full Expensing Compliance Check

Why this matters

Capital allowances let UK businesses deduct the cost of qualifying plant and machinery from taxable profits, and they are governed by the Capital Allowances Act 2001. The Annual Investment Allowance (AIA) gives 100% relief on up to £1 million of qualifying spend each year. Companies can also claim full expensing, which gives 100% first-year relief on most new main-rate plant and machinery, and a 50% first-year allowance on special-rate assets, under rules made permanent by the Finance Act 2023. Sole traders and partnerships cannot claim full expensing but can use the AIA and writing down allowances.

Mistakes are common and costly. Claiming on assets that do not qualify, such as land and buildings or some cars, putting items in the wrong pool, missing the rules on disposals and balancing charges, or failing to claim at all can lead to HMRC enquiries, tax adjustments, interest and penalties. Many businesses also under-claim, for example by missing integral features, fixtures in bought premises, or the Structures and Buildings Allowance. Reviewing your claims each year before the Corporation Tax or Self Assessment return is filed helps you claim what you are owed and keep records HMRC will accept.

What you'll need

• Your fixed asset register or a list of equipment and vehicles bought this year
• Purchase dates, costs and whether assets were new or second-hand
• Your last capital allowances computation or pool balances
• Details of any assets sold, scrapped or leased

What you'll get

A personalised compliance report covering: a score out of 100, an executive summary, a list of findings ranked by severity, and a prioritised action plan with timeframes.