What the Autumn Statement means to Mid Market Business

The publication of the draft Finance Bill 2013, following the Chancellor’s Autumn Statement is a good opportunity to review some of the tax measures that are expected to come into force next year that are of particular relevance to mid market business.

This has a number of positive implications and can in conjunction with finance agreements help to drive IT investment into business. K3 have themselves well positioned with support from funding partners to look at Tax efficient ways of encouraging enhancement and upgrades of your companies IT systems. We even have in place a 0% finance schemes (subject to company status) to encourage upgrades to your companies ERP systems.

Corporation tax rates

The Chancellor has continued with his aim to reduce the main corporation tax rate. The rate from 1 April 2013 will be reduced to 23% (from 24%) and then reduced further to 21% from 1 April 2014. The Chancellor has stated that his aim is to reduce the corporation tax rate to 20% in due course

Capital allowances

As often happens, the Chancellor has used the capital allowances system to encourage businesses to invest. The Annual Investment Allowance (AIA) gives a 100% tax deduction for capital expenditure (as opposed to the 18% or 8% deductions under the “normal” capital allowances scheme). In recent years the AIA has been reduced and now stands at £25,000 per year. From 1 January 2013 the AIA will be increased tenfold to £250,000, the highest level since its introduction in 2008.

This increase is only intended to be temporary and lasts for just two years so the Chancellor is clearly hoping that businesses will take the opportunity to accelerate £500,000 of capital expenditure before the end of 2014. While many businesses will not be able to fully benefit from this increased allowance, it may be possible in many cases to bring forward capital expenditure so that it falls before 1 January 2015 giving a much accelerated tax benefit and do not forget to consider delays only planned until 1st July 2013.

Getting something for nothing is a big deal. Now you can get 0% financing for 24 months* when you purchase a Microsoft Dynamics ERP solution. It’s that simple.

Let us help you stretch your capital budgets and manage your cashflow. With a 24 month Lease or Rental Plan, you can acquire all aspects of the ERP solution including software licenses, services and maintenance – all at 0% interest. And unlock the full potential of your organisation. Let a little make a big difference in your organisation.

Take advantage of 0% financing and enjoy the benefits of leasing with K3 in conjunction with Capitas finance.

No Need to Compromise

You don’t have to postpone or delay putting the latest and best technology to work for you. Enjoy greater functionality without compromise.

Tax Treatment

100% of repayments are tax allowable; compared with mormal writing down allowance permitted on purchase.

100% Financing

Finance offers you the productivity improvements of new technology while meeting cashflow needs. In addition to software you may include services and maintenance within the arrangement.

Upgrade Flexibility

Subject to credit approval, you can exchange or add pre-determined amount of the solution during the agreement, without an increase in the periodic payment. A new facility period then commences which can either mirror the original agreement or new anticipated working life of the upgraded system.

Preserves Cash and Credit Lines

Complimentary funding line that does not affect your existing credit lines. Capital can be put to use for other business critical areas. In addition, our facilities are not repayable upon demand.

No Security

No charges on debtor book or debenture requests on other assets.

Low Monthly Payments

Payments will be lower than conventional financing. We can also customise a payment plan profile that can fit with specific organisational needs.

Contact K3 on: 0844 225 2480 or Email: simplydynamics@k3btg.com