SMEs could be in line for tax rebate

Hundreds of thousands of UK small business owners are due a sizeable tax rebate from HMRC, according to a tax specialist.

CA Tax Solutions says that any company that owns a commercial premises has a high probability of receiving a capital allowances tax windfall to the tune of thousands, or even tens of thousands of pounds.

Research from accountancy firm Deloitte confirms that in nine cases out of ten, capital allowances reports will uncover a tax rebate for the owner of a commercial property.

To date, CA Tax Solutions claims that the average rebate it has generated for smaller UK commercial property owners is £25,000 net, with the biggest tax rebate more than £10 million net.

Because claims can be made historically, CA Tax Solutions estimates that there is £65 billon-£70 billion of net tax rebate lying unclaimed in the UK's commercial property stock.

Smaller businesses that own commercial property are most likely to be due a rebate as their accountants will often not understand the intricacies of capital allowances and how to uncover them, adds the firm.

CA Tax Solutions managing director Mark Tighe says, ‘Capital allowances are one of the more obscure areas of tax and for this reason they often pass under the radar of a lot of firms. And for obvious reasons, HMRC isn’t shouting about it from the rooftops, either.

‘A big problem is that many accountants are embarrassed to approach their clients about the issue, as really this is something they should have alerted them to years back. The truth, though, is that accountants can't be expected to have the skill set required to identify capital allowances. The bottom line is that it's a very tough climate for the majority of UK firms right now and a cheque from HMRC would be a real fillip.’