Feeds

UK IT tax break deadline looms

31 March cut-off for small.biz tax clawback

  • alert
  • submit to reddit

Reducing security risks from open source software

Small businesses must hurry to take advantage of tax breaks on IT equipment before the incentive is withdrawn next week, according to Microsoft.

In last Wednesday's Budget, chancellor Gordon Brown announced that the ICT tax allowance for small firms will end on 31 March.

The tax break allows entrepreneurs to claim 100 per cent first year allowances on investments in ICT, allowing them to write off capital expenditure against profits for tax purposes, whereas larger companies are required to write them off at the rate of 25 per cent per year.

Although many small firms were initially unaware of the tax break, it was welcomed by business groups for making it easier for entrepreneurs to invest in costly IT equipment.

Microsoft said that small businesses must now hurry if they are to take advantage of the tax break before it expires next week.

John Coulthard, head of small business at Microsoft, said that he was disappointed to see the government didn't extend the ICT capital allowance.

"Last year 40 per cent of small businesses claimed that they didn't feel they would be able to afford an IT upgrade. Gordon Brown's decision may therefore result in millions losing out on the competitive advantage of an effective IT system.

"Over the last year Microsoft has worked to promote this right to small businesses. During 2003, small businesses in Britain were planning to buy more than 3.5 million computers. With only one week left before this benefit is a thing of the past, they must grab this opportunity without forgetting that the ICT investments must map onto their business objectives and that the technology must support the business growth," he said.

Copyright © 2004, Startups.co.uk logo

Seven Steps to Software Security

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.