Struggling businesses ― how to ease cash flow

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

If OMBs are struggling to maintain their cash flow and are maybe looking to obtaining debt from outside sources, this guidance note provides a summary of tax areas that can be reviewed with your OMB corporate clients that can help with cash flow and accessing funds.

Maximising capital allowance claims

Capital allowances are a valuable tax relief for OMBs, and maximising any claims can help improve cash flow. Specific areas to review are as follows:

First year allowances on plant and machinery

First year allowances (FYA) are available for companies only and allow a 100% FYA on qualifying main rate plant or machinery expenditure incurred on or after 1 April 2023 and also provide a 50% FYA on special rate expenditure, see the Special rate pool and long life assets guidance note. Qualifying expenditure must be new and unused and cannot be any of the excluded assets which includes cars although a 100% FYA is available for electric cars under different provisions.

For more details, see the First year allowances guidance note.

Structures

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