The company estimates that, for every £100,000 a business spends on its premises, capital allowances can be claimed on 30% of this — but in certain circumstances it could be as high as 90%.
MoneyBee Tax explained that pubs can claim tax back on money spent buying, building or refurbishing premises, and fixtures and fittings within the building.
In a survey of 2,000 licensees, it found some claim allowances for items such as furniture, bar fixtures and catering kit as part of their tax return every year. However, items such as artwork, plants and even Christmas decorations, as well as audio-visual equipment and lighting systems should also be included.
Andrew Reid, manager at MoneyBee Tax, said: “The value of capital allowances will vary, but we rarely come across a case where a pub can’t save money.
“To give an example, if a bar/restaurant spent £100,000 on refurbishment it could be claiming capital allowances of £30,000, potentially giving a tax rebate of £12,000. Importantly, even if you bought or refurbished your premises years ago, a claim for capital allowances can still be made.”
To calculate any potential tax rebates, go to www.moneybeetax.co.uk
HM Revenue & Customs: capital allowances
Her Majesty’s Revenue & Customs (HMRC) factsheet on capital allowances reveals: “Anything you use that has a useful economic life of at least two years may qualify for capital allowances. This does not apply to items that it is your trade to buy and sell.”
It adds: “[These] can be claimed by completing the relevant capital allowances boxes on your (tax) return. The boxes to be completed will vary depending on the type of return.”
Go to hmrc.gov.uk for further information.