Summer 2009 Newsletter Content Pot and kettle No more stealth Pensions hit A place in the sun Ready or not... Nice motor Making allowances Good times, bad times Tax-free checkup Three square meals Funny question Dividend rules OK? Too good to be true? Pay my friend Early EIS Mind the halfpennies Just the ticket Flat rate changes Foreign Service This year, next year Partial exemption Penalties Compliance checks Under their eye Howzat? Know your rights Discipline Don't be mean Redundancy Two sorts of absence Warranties

Making allowances One of the Budget measures intended to boost business was the temporary introduction of first year allowances on plant and machinery at 40%. They keep changing the rules, but the current rate of tax depreciation is 20% a year on most assets, so you get two years' worth of relief at once on anything you buy in the year starting 1 April 2009 (companies) or 6 April 2009 (income tax traders). Except... you already get 100% relief on the first £50,000 of plant and machinery bought in a year. So this change only helps you if you spend more than that. If you are planning large expenditure on plant, it's worth thinking carefully about the timing to make sure you get the best relief. We can work out the numbers for you.