An accountant must have the ability to know where a client may claim capital allowances. This allows him to prevent the client from moving into pitfalls. The accountant must be aware of the latest legislative moves and should be able to convince his client to take the right decision.
Remember these facts to help you as an accountant:
1. One must always claim allowance on items that are used in a business. You need to analyse and understand whether an item will get the allowance in a certain business. The type of business decides whether the allowance should be provided.
2. You must check during building and renovation about the allowance the client may receive. You may even check before the renovation work actually starts to have a clear picture of what your client may get.
3. You must also remember that furnished holidays also qualify for allowances. Here residential buildings are also considered for the allowance.
4. A client may get allowance for UK property as well provided he pays the tax regularly in UK.
5. You must address the issue of capital allowance before you go to the market if your client is planning to sell the building. You may then use the amount of the allowance against the profit of the building. You may even roll out the residual amounts as sale particulars. This is a great way to make the property attractive and increase its sale price.
6. You must never derail a deal at the last hour. If the solicitors raise their hands and shift their duties onto your head, make sure you play your role well and make yourself appear helpful. The client should be able to make some gains with your advice.
7. Always play safe and check out if there are any loopholes that may lead to losses for clients. This will also help you in your profession. The job of an accountant involves several legal issues and playing safe prevents you from being sued for petty problems.
These tips are sure to help any accountant who deals with allowances.