When trying to build a successful business a key headache is often how to attract and retain people with the necessary skills. As a growing company you may not have the cash to offer the same level of financial rewards as more established companies – so how can you compete? Many businesses are turning to employee share schemes as a solution.
In an age where disruption, innovation and adaptability are seen as everyday challenges in one of the UKs flagship sectors, is Brexit really a cause for concern for the tech sector, or is it already primed for such challenges?
It’s no secret that the majority of tech firms wanted a ‘Bremain’ result to carry forward the momentum for what has been a meteoric rise over the last six years. Just prior to the EU Referendum, The UK’s technology trade association, techUK, surveyed 277 technology business leaders and found that 70% were in favour of staying in the EU, with only 15% supporting a Brexit.
MHA Broomfield Alexander are one of a number of high profile experts that have partnered with Welsh ICE to offer advice to start-up businesses.
The scheme will allow entrepreneurs and business owners to access free advice of the highest quality on subjects ranging from data protection and law to tax and accounting.
Broomfield & Alexander’s very own Mike Fenwick and Denise Roberts will be at Venturefest Wales, Swalec Stadium, Cardiff on Tuesday 29th September 2015.
Venturefest Wales 2015 is a free event that brings entrepreneurs, innovators and investors together to inspire business growth through collaboration. Make new connections while you visit the unique mix of workshops featuring inspirational speakers and one-to-one sessions with experts.
Mike will be available in the ‘Meet the Experts’ area for 121 sessions on Grants for Entrepreneurs, if you wish to discuss your plans, potential eligibility for R&D, capital expenditure and job creation grants, as well as discuss the importance of match funding and project presentation to provide you with the best possible chance to access funding. Match funding sources such as debt and equity can form part of an overall funding package and a number of competing issues may need to be considered so come and discuss your options.
Denise will be leading a workshop entitled, Tax options for innovative companies: maximising your tax reliefs.
Businesses are continuing to operate in a challenging market with increasing pressures on margins. However, innovative businesses who are driving forward with investment in the development of new/improved products, applications, or processes have found that they can use tax reliefs to improve their margins.
Tax reliefs such as R&D Tax Credits and Patent Box are much publicised but come along to this workshop and find out how to really maximise your claims and find out about the wide range of type of claims that can be made.
The Budget today was a very mixed bag for the digital, media and technology sectors, probably with more negatives than positives.
We knew from previous announcements that the corporation tax rate would be reduced to 20% from 1 April 2015 and that tax relief for R&D would be increased from 1 April 2015 also.
We also knew that measures to encourage employment of under 21’s and Apprentices are being introduced via an exemption from employers NIC.
There were helpful extensions to the Creative Sector tax reliefs for High End Television and the introduction of a tax relief for Orchestras (and a consultation to consider how tax reliefs could assist local newspapers). There was also new funding announced for games developers in the form of a Video Games Prototype Fund.
The 1st January 2015 has been and gone and suddenly HMRC’s “Mini One Stop Shop” (MOSS) is the topic of conversation!
Early reports suggest that the HMRC registration machine is struggling to keep pace with the late demand. Some traders are stopping direct sales to the EU and the position on platforms and marketplaces is confusing. There is evidence emerging that some member states are interpreting the rules differently and some, such as Italy, have missed the staging date altogether.
America appears to have woken up and there are groups lobbying against the requirement to account for EU tax. Other countries such as Japan, South Africa and Australia are looking at dates in 2015 to implement the same system. Watch this space!
If you would like to discuss your concerns please contact us on [email protected] and we would be happy to advise further.
As we rapidly approach the 2015 deadline, HMRC have recognised the position of UK based B2C digital suppliers trading below the VAT registration limit. Before this latest announcement, businesses in this position were faced with the prospect of having to acquire a VAT number in order to access the MOSS system. This increased the cost of their UK sales by 20% as VAT would need to be added to or accounted out of the sale price.
The recent announcement allows for a UK VAT registration for MOSS purposes but allows businesses trading below the £81,000 VAT registration limit to continue to make sales in the UK free of VAT.
For further information, please see the following link:
If you would like to discuss the latest announcement please contact our tax team who will be able to advise you further on [email protected]
In an attempt to place the UK in the ‘good citizen camp, the UK has agreed to put forward a proposal to end its current patent box regime. The patent box regime came into force on 1 April 2013 and over a period of time aimed to provide a 10% rate of corporation tax for profits earned from patented innovations and certain other IP rights. This concession to Germany addresses the concerns raised over the alleged competitive advantage it gives Britain over its fellow EU member states.
The draft proposals which will need to be ratified by the G20 and OECD – will require tax benefits to be connected directly to R&D expenditures. There will also be amendments to issues in relation to qualification of expenditure, grandfathering and tracking of qualifying R&D expenditure.
If the proposals are agreed by the OECD Forum on Harmful Tax Practices, the patent box will close to new entrants in June 2016 and will stop operating in June 2021. An agreement between the UK and Germany refers to a “transition to new regimes” but does not give details as yet for the replacement of the patent box.
It is clear that any new regime will curtail the taxation benefits available under the current system, as ever the devil will be in the detail.
In the March 2014 budget, the Chancellor announced the extension of the Creative Industry Tax Reliefs to theatre productions. There has followed a period of public consultation and whilst we wait for specific guidance to be issued in the near future by HMRC, the theatre tax relief will be available from the Autumn of 2014.
Theatre companies engaged in the production of theatre and liable to corporation tax will be entitled to claim the new theatre tax reliefs where 25% or more of the qualifying core expenditure relates to expenditure in the European Economic Area. The theatre company will need to be responsible for actually producing the content of the production, and therefore it will be important to determine whether the theatre production is produced by the hosting theatre or the touring production company.