Tax Tips For The Technology & Innovation Sector
We all know the world of tax is a minefield, and businesses in any industry that don’t regularly review their finances run the risk of being either non-compliant or paying more tax than they need to. The following tips have been prepared to help you be rest assured that your Tech business is running as tax efficiently as possible.
Check to see if your company is carrying out Research & Development (R&D)
Numerous businesses are either not aware of R&D tax credits, incorrectly believe that they do not qualify or feel that they lack the necessary experience to submit a claim.
Many companies are not claiming or not maximising their full legitimate entitlement, yet they are conducting qualifying R&D activities for R&D tax relief purposes on a daily basis, without even realising it. What may seem as typical day-to-day challenges in the office may qualify, and if they do – it is an incredibly quick way to plug some cash back into your business, at a time where you need it most.
Significant technical development on their products or processes. In an industry where technology moves forward at an unprecedented rate, companies in this sector are often faced with a number of technical challenges and complexities when developing their products. Typically, development involving the use of existing technology with minimal improvements or technical challenges, would not qualify for R&D tax relief e.g. simple configurations or straightforward integrations of off-the-shelf products. However, where businesses are creating, utilising, amalgamating or significantly extending technologies in an improved and innovative way, may mean that qualifying R&D is taking place. This creates opportunities for tax reliefs and incentives for the taxpayer.
Speak to a R&D specialist firm to see what expenses qualify to help maximise a claim for R&D tax credits
At Raffingers, we submit around 100 claims each year and, to date, we have a 100% success rate so receiving tax repayment notifications is quite a common event. Since 2015 we have identified qualifying R&D expenditure for clients in excess of £30million pounds and have also secured R&D tax savings and repayments for clients in excess of £5million pounds.
Through regularly reviewing your business and its activities we are able to assess if you qualify for an R&D tax relief claim. During this process we also discuss your goals and future eligibility for the relief. We then take care of the preparation and submission of the R&D claim and will deal with any questions raised by HMRC.
We're here to help you discover whether your company qualifies for R&D tax credits and to support you through the process of submitting the claim.
Consider share schemes to incentivise employees
Share Schemes are a great way to award and incentivise employees, directors and non-executives. We can help with the paperwork to ensure it is done in the most tax efficient manner.
Consider EIS and SEIS investments and tax reliefs for investors
We can help you set up your business in order to secure investment through the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS). We will advise you on the requirements of the scheme, check that your business meets all the criteria and explain how you can enhance your business investment proposition. Our team of tax advisors will take away the headache of the set-up process, dealing with all paperwork and even getting advanced clearance from HMRC to ensure you qualify.
Retain your key technical staff by structuring attractive tax efficient remuneration packages
Our team of specialist tax advisors can help you look at different remuneration packages to discover which ones work best for you, and your employees.
Think about the long term and a tax efficient exit from the business
As a business owner, it's wise to make use of tax planning strategies, be compliant and don’t pay any more tax than you need to. We have a highly experienced team (including an ex HMRC Tax Inspector) who will help you identify opportunities to reduce your tax bill and make your business more profitable. Ultimately, our job is to ensure that you reap the rewards of your hard work whilst still being compliant, our talented team of tax advisors will help you do just that.
If you need advice regarding your eligability for R&D claims or other tax planning strategies, contact our Tax Partner today at firstname.lastname@example.org or call him direct on 020 3146 1605.