It is normal for a claim to already have been made by your accountants on expenditure that is easily identifiable as being on machinery and plant. In many cases however, allowable costs are incurred in a way that your accountant is unable to identify because they are included within a generally unspecified invoice. In particular, payments made to a main contractor will normally have no detail attached to them and will therefore be appropriately allocated to land and building additions in your accounts. We are able to assist your accountant to break these invoices down and re-allocate those costs that qualify for machinery and plant allowances. We then work with your accountant to prepare the claim with the calculated additional value.

Tax relief is available on machinery and plant used in the trade.  There is no legislative listing of items that qualify as machinery and plant and the determination of what costs will be allowable is subject to the nature of the trade and consideration of the function of the equipment.  Case law and precedent along with accepted practice assist with providing a working procedure for identifying, valuing and claiming allowances.  The team at CAPLUS has extensive experience in preparing claims and have worked with Revenue Commissioners in securing agreement to substantial tax savings for property owners, tenants and investors.

Our initial analysis is a free service to determine if unclaimed capital allowances exist.  Once we establish an ability to claim additional relief, we deliver our valuation service on an incentivised fee based on a percentage of the tax saving identified.  Our fees are calculated as percentage of the tax saving identified, plus VAT.

As self-assessed tax payers have responsibility for operating the Universal Social Charge in respect of all income sources, the tax saving will be based on your income tax rate including the USC.  This provides a higher effective tax rate for saving than the 40% higher rate of tax.  Including USC we have had clients saving at a rate of up to 55%.

You have two options available when your capital allowance analysis is completed.

Option 1 you can back date your claim on a straight line basis to a maximum of four years & carry forward four years. If you chose this option you will get a rebate from revenue provided you have being paying either income or corporation tax.

Option 2 you can carry forward your allowances over an eight year period on a straight line basis and write them off against future income.

The whole exercise could be completed within 4 weeks provided all information is supplied promptly (see Initial Analysis tab above).

Where a tax rebate is due this is normally processed within 8 weeks of an amended computation being submitted to Revenue.