The Farmers Mart Feb/Mar 2015 - Issue 38 | Page 9

Farm News Timing is critical Proper advice is needed because different financial years that straddle either the tax year or calendar year end may result in complicated calculations that could result in a lesser AIA being granted in that financial year. The chart below illustrates the maximum amounts available by showing ‘different financial years that straddle either the tax year or calendar year end may result in complicated calculations that could result in a lesser AIA’ four different financial year end companies and how vital it is to spend the right amount within the right periods in order to maximise the tax benefits. For financial years ending in 2014 and 2015, the maximum AIA actually available may be lower than the amounts indicated in the chart, depending on the timing of the expenditure. Given the lead times of some tractors, telescopic handlers and machinery, from order to delivery, this also needs to be carefully factored in to your buying plans. Get the timing and /or the amounts wrong and your business could either miss out on available tax relief or worst still, end up paying far more tax then is required. Other factors being equal, if your business is contemplating ‘Get the timing and /or the amounts wrong and your business could either miss out on available tax relief or worst still, end up paying far more tax then is required. purchasing farm machinery in the near future, there are some strong tax-based and cash flow arguments to carefully plan the set purchases before the end of your financial year and certainly before 1st January 2016, so that you can maximise on the available £500,000 tax relief. JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority. JCB Finance provides asset finance for UK businesses for both JCB and non-competitive plant, including ‘every business’ circumstances are different’ vehicles and cars but it is not a tax or financial advisor always seek advice from your accountant or finance director, because every business’ circumstances are different. Businesses should not make investment decisions purely on a tax basis. Will Wastling, Partner, F H Wastling & Sons ASSET FINANCE THAT FITS YOUR BUSINESS Flexible finance solutions tailored to your particular needs Finance for all types of farm machinery and vehicles, new and used Available for both JCB and non-JCB assets We are a ‘people’s business’ with a nationwide team of relationship managers We focus on meeting the needs of our customers 92889.002 JCB Agricultural Advert 144x210 aw1.indd 1 FIND OUT WHAT MAKES JCB FINANCE THE RIGHT FIT FOR YOUR BUSINESS 0800 150650 WWW.JCB-FINANCE.COM Lines are open 8.30am to 5.00pm Monday to Friday JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority 18/09/2014 09:42 www.farmers-mart.co.uk Feb/Mar 2015 9