Capital allowances are a fairly complex subject and in recent years the benefit of them has changed with more changes scheduled for April 2012 by the current government. Now is the time to understand how your company could benefit from capital allowances and how the changes will affect future tax allowances.

Firstly what are capital allowances and who is eligible for them:-

As a business if you are thinking of investing in your company buying new tools, plant and machinery (it is a good idea to get an understanding of exactly what falls under plant and machinery) or vehicles (not cars) or if you would like to adapt a building to make it suitable for your business you may be able to claim capital allowances to help reduce the financial burden on your business in the long term.

Capital allowances are set to change from April 2012 with the current rate being the lowest rate since the allowance was introduced in 1970, its clear now is the time to look at how your business could benefit.

If you claim before April 2012 based on the old rate a 100% first year allowance enables your business to write off the cost of investments against your taxable profits of up to £100,000.00 from April 2012 this figure is greatly reduced to £25,000.00.

If you have recently made changes to your business premises or invested in assets for your business now is the time to act, before the amount is reduced to £25,000.00. » Read more: Help Your Business Grow With Capital Allowances

The best thing about being self employed is being your own boss. However, while filing taxes, it can become difficult for a self employed person to know exactly what to file, when to file, and how to do it.

Any UK resident who is self employed needs to complete a self assessment tax return every year. This also pertains to an individual who is a partner in a business partnership. For this, an individual needs to register for self assessment before he or she can actually get a tax return form from the HM Revenue and Customs or HMRC.

While most taxpayers are taxed at source, that is, tax is already taken from the money that they earn, self employed individuals have to calculate and pay their taxes to the HMRC within six months of the end of the tax year. This can become quite difficult and cumbersome for anyone who does not really know how much they owe in taxes.

Registering for self assessment can itself prove to be quite a difficult task to understand. You need to register by 5th of October after the end of the tax year. For this, you will need your National Insurance number, your contact details, the contact details of your business, and the date that you became self employed. » Read more: Tax Help for the Self Employed