Capital Allowances for Accountants

Many accountants are faced with the need to provide capital allowances advice to their clients. This is a detailed area that requires a specialist team with a thorough approach to deliver the most up-to-date, practical advice. There are many intricate factors that affect whether particular types of capital expenditure qualify for allowances, and all of the financial aspects - revenue, expenses, taxable profits and capital contributions - must be positioned correctly to take the best advantage of the tax relief opportunity offered by capital allowances.

In these cases, accountants may need to work with specialists to help their clients maximise their tax savings. At Monetta, we work with accounting firms across the UK to deliver this service, and offer capital allowances support that will minimise the Corporation Tax or Income Tax your clients owe. With our experience in claiming allowances and our knowledge of the rules that apply to a range of UK industries, we are well-positioned to support you.

Contact Monetta's specialists today to learn how we can help you and find out more about our approach to working collaboratively with accounting firms. Call your local Monetta office or use our online enquiry form to get in touch today.

How Monetta Can Help

Increasingly, accountancy firms use specialist services where necessary to help them calculate capital allowances on behalf of their clients, or to provide general tax relief advice. At Monetta, we have taken the same approach and will call on trusted advisors - including other accountancy firms - for advice on areas that are outside our specialism.  

Similarly, our services are available to accountancy firms who need support with capital allowances, qualifying assets, and related considerations. As an accountant, you can feel confident that, because Monetta is governed by the same institutions as you are, we will adhere to high levels of quality assurance when assisting you and your clients. In such situations we would work on a strict ‘non-disclosure’ and ‘non-compete’ basis, which we believe is fundamental to the creation of lasting business partnerships.

We regularly offer several services to accountants, beyond helping them to claim capital allowances. From the moment we are instructed, we will examine the relevant property transaction or capital expenditure to provide a comprehensive, fully disclosed capital allowances review. This enables us to verify whether allowances have been previously claimed, and early instruction means we can advise clients on their ability to claim capital allowances pre-purchase. That way, you can make sure your client's transactions are positioned correctly to maximise their capital allowances claim.

Throughout our partnership, Monetta will monitor for compliance with the relevant laws governing capital allowances, and help you by answering any questions or queries from third parties, such as the solicitors involved in a purchase or sale.

Partnering with us allows you to ensure that clients are correctly serviced with respect to capital allowances. We can often save you time, but we will always make sure to minimise your client's tax bill and take full advantage of the savings on offer. If this requires additional input from you as the primary accountant, we can offer part of our fee to cover your services.

Capital Allowances Case Studies

Some accountants may feel concerned about working alongside another firm, but we have a strong track record of success in this area and are prepared to deliver the best possible outcome for all parties involved. At Monetta, our approach is not just to provide ad hoc services, but to build lasting partnerships that can deliver reliable results over a longer period of time. As such, we always endeavour to provide high quality services that can act as the foundation for a lasting relationship between Monetta and other accounting firms.

Two of our recent successes are described below:

Case Study: Qualifying Expenditure in a Hotel Refurbishment

We were contacted by a long-standing partner firm. Their client was refurbishing a hotel and the contractor initially appointed was taken off-site for non-performance; they then appointed a new contractor to complete the works.

The total spend was in the order of £4.5m, which was significantly higher than the original budget of £3m. Furthermore, the initial contractor had costed circa £2m and provided interim valuations but did not give detailed records.

With the total costs, the contract sum analysis and our site surveys, we prepared two valuations reconciled to the total additions. The first valuation identified the capital allowances incurred within the initial contractors’ works with all associated fees and direct orders. For this part, we had to prepare our own detailed breakdowns in order to present something HMRC and its agents would understand and be comfortable with. The second part of the exercise was to liaise with the new contractor and have the information provided in greater detail. Combined, we managed to identify just under £3.25m in capital allowances, plus some repairs and maintenance expenditure.  

Case Study: A Commercial Property Portfolio

A firm took on a new client who had a sizeable property portfolio. The previous accountant took 10% of the property purchase price as capital allowances claim. This was reviewed and rejected by HMRC.

We provided a detailed due diligence for each property and, out of the 18 commercial buildings in the portfolio, 15 had a valid capital allowances claim. Following this review, we managed to increase the initial attempt by almost 100% - this was despite three of the properties having no capital allowances.

Because the original claim was rejected, HMRC reviewed our reports carefully. However, it accepted them at face value and the client was successfully able to claim capital allowances worth much more than they might have otherwise.

Creating Lasting Partnerships

At Monetta, we know that mutual benefits come from creating lasting relationships. This is why we do not impose a minimum project size - because if it benefits your client, it benefits you. Some of the key services we offer to our accountancy partners include:

• An initial no-charge due diligence and review
• Assistance on answering any capital allowances questions when your client is buying or selling a property
• A review of third-party capital allowances reports, to provide you with comfort that the claim is valid
• Provide legislative back-up to any questions or queries
• Preparing compliant CAA2001 s198 elections
• Online or in-person CPD training

We would welcome an opportunity to speak with you, so please do not hesitate to get in touch for an initial chat.

Why Choose Monetta?

At Monetta, we combine the approach of a local firm with a network of offices around the North West. This means that we are invested in our relationships with clients and other accounting firms, and are able to give them the care and attention they deserve. At the same time, we can scale our services to clients of all sizes and provide capital allowances support for even the biggest business investment.

If your clients are making plant and machinery investments, refurbishing commercial property for business purposes, changing or upgrading integral features or building a new premises, professional advice from our team can help them to claim benefit from the maximum amount of tax relief. We will advise you on the relevant tax legislation to ensure your clients claim the full tax allowance that they are entitled to and maximise the value of their new business assets.

We can also provide guidance on large-scale transactions and review the financial elements of any deals to make sure everything is positioned to take advantage of capital allowances. Because we are invested in your (and your client's) success, you can rely on us to make sure your clients are satisfied with the service they receive from our partnership.

Get in Touch

To learn how Monetta partners with accountants to help them claim capital allowances on behalf of their clients, and the other types of support we can offer, get in touch today. Call your local Monetta office or use our online enquiry form to request a call back. You can also look at our team page to find out more about our capital allowances specialists.