SMEs are missing out on tax breaks

Start-ups and small to medium-sized businesses across Lancashire are potentially losing thousands of pounds by failing to take advantage of lucrative tax breaks.

Doubling the allowance to £500,000 was among the chancellor’s business-boosting measures in Budget 2014. However, this tax relief on qualifying expenditure is a temporary increase and the threshold will revert back to just £25,000 as of 1 January 2016.

“The government hopes that doubling the AIA will encourage innovation and investment in the UK, but I still think there’s a great deal of work to be done to raise awareness amongst local entrepreneurs,” explains Gill Molloy, group tax director at Champion Accountants.