Exposing unclaimed tax savings

What most advisors see...

An accountant will generally identify visible fixtures and fittings when making a capital allowance claim. These are things that might be clear from invoices, and also obvious from any photographs.

Take this example from the hospitality sector. The capital expenditure is based on a claim we carried out for an independent pub/restaurant. When claiming, the accountant identified the following...

Lighting - New ceiling and wall lights £15,000.
Air conditioning - Full new system £34,000.
Furniture - New dining tables and chairs, bar seating and £17,000.
Kitchen - New cooking and catering equipment £40,000.
Toilets - New sanitary ware £8,000.

There's a good chance all of this will sound familiar. These forms of expenditure are commonplace and most accountants will capture them in the corporation tax computation.

However, they are just the start.

What we see...

Our quantity surveying expertise and understanding of the construction process enables us to dig beneath the surface and expose tax savings that aren't immediately visible. In this particular case, we identified these additional allowances ...

Alterations incidental to main pool plant or machinery installations - Backfill and cap soil pipe, steel beam for folding partition, install ducts/drainage £19,624.56.
Catering & welfare equipment - Ovens and dishwashers £1,961.36.
Furniture & furnishings - mirrors, worktops, sound systems and refrigerators £6,698.
Alterations incidental to special rate pool plant or machinery installations - Labour preparing the floor and laying water main £4,489.58.
Electrical installations - Electricians costs, materials, and drilling £93,093.15.
Machinery - Locksmith and walk-in fridge £14,630.05.
Signs & displays - Printing services, signage and plastics for signage £577.12.
Heating, ventilation & air conditioning - cutting holes for extract vents £464.52.
Decorative assets - New wood-burning stove £870.97.
Hot & cold water installations - Plumbing works, drain clear, pipework £10,152.01.
Telecommunications installation - Data cabling £1,357.85.
Thermal insulation - Underfloor insulation and double-glazed windows £14,481.40.

Altogether we identified an additional £168,400.57 of qualifying allowances. At a 19% corporation tax rate (2022), this created an additional tax saving of over £31,996.11.