There are many ways you can boost the profitability of your company and once you have the accounts in order it's possible to see areas that could benefit from investment.

For example, you may want to target your employees by offering more training opportunities, or perhaps you've got some new stock in mind that will hopefully prove a hit with your customers. Balance sheets are a good way to break down the many components that make up your organisation, as they detail your assets and liabilities. Fixed assets tend to be a common location for investment as they describe the long-term possessions that your firm owns.

Types of assets

Although fixed assets sounds as though they are static and do not change, this is not quite the case because they can be both tangible and intangible. Intangible include intellectual property rights, such as patents and trademarks. Tangible fixed assets may be the most well-known as they include buildings, land, as well as fixtures and fittings.

These can all be good places to make investments as they allow your business to operate in the long-term. Another good reason to consider capital investment techniques is that you may end up paying less in tax if you buy items that fall into this category. In order to help businesses flourish, the government allows you to claim a certain kind of tax relief when purchasing some capital assets.

Get the best capital investment for your firm

If making an investment of this type appeals to you, then you may be confused as to where financing is best placed. Described below are the major areas that often qualify for capital allowances, although more information is available via financial training courses. Depending on the type of firm that you have, some categories may be more relevant than others.

Equipment, fixtures and fittings

As previously mentioned you may qualify for capital allowance tax in regard to items you buy for your buildings. Plants and machinery fall into this category and these may include lots of goods. For example, you may require new sanitary ware or kitchens within your organisation.

In addition, if buildings need important features replaced, such as new wiring and heating systems, these appliances could attract tax relief. Also, equipment used by staff may qualify for capital allowance, such as vehicles, computers and other office equipment. It's important to note that you cannot usually claim this tax relief in regard to the actual purchase price of the buildings or land concerned.

Renovations and conversions

Sometimes you will need to update your property in order to make your business as efficient as possible. There is some provision to include these kinds of changes within your capital allowances. Firms in designated 'disadvantaged areas' or 'assisted areas' are free to apply for a Business Premises Renovation Allowance, although regulations ought to be checked before going ahead with significant alterations.

The government also provides further allowances for companies who wish to spend money converting nearby premises into living quarters for letting. So, if your premises feature spaces that could be converted into flats for short-term renting, then the money you spend may qualify for Flats Over the Shop relief. This would include financing you use to convert, renovate and provide access to the living quarters concerned.

Other capital allowances

There are several other kinds of capital allowances that may be the ideal place for investments. Some companies like to associate themselves with charities and support causes. If you donate your used assets to charities and specific community sports clubs then you could qualify for tax relief on the items, for example. Other categories include patent allowance, assured tenancy allowance and mineral extraction allowance, among others.