HMRC has recently updated the Capital allowances for plant and machinery toolkit for 2020-21. This toolkit is aimed at helping and supporting tax agents and advisers by providing guidance on the errors HMRC find commonly occur in relation to capital allowances for plant and machinery. These errors usually relate to record keeping, acquisitions & disposals and the non-business use of cars.

This toolkit is applicable for financial years commencing 1 April 2020 for Company Tax Returns and 6 April 2020 for Income Tax Self-Assessment tax returns. The use of the toolkit is entirely voluntary.

HMRC Toolkits have been designed to provide information on previous risks that have been identified. It is hoped that this information will help accountants and agents identify the necessary checks that they can carry out.

This in turn will assist taxpayers in proving that they take reasonable care in completing their tax return. The use of the toolkits by accountants and agents is optional. The toolkits are aimed at helping accountants and tax agents reduce the likelihood of mistakes in returns.

Source: New feed