This document provides an overview of R&D tax credits in the UK. Some key points:
- R&D tax credits incentivize companies to invest in innovative technology by providing tax relief of up to 32% of qualifying R&D costs.
- Both profitable and unprofitable companies can claim tax credits, either as a reduction in taxes owed or as a cash refund.
- Qualifying costs include direct labor, external staff, subcontracted R&D work, and consumables used in R&D projects.
- To qualify for credits, projects must involve technical uncertainty that a competent professional could not easily resolve.
1) HMRC has issued new guidance on employers recovering VAT on pension fund management costs. The guidance recognizes that due to the unique structure of UK pension schemes, employers can reclaim VAT if they meet certain conditions, such as directly paying the fund manager.
2) An advocate general opinion found that holding companies can fully recover VAT on costs related to acquiring subsidiaries and raising capital as long as the activities are directly linked to the company's overall economic activities.
3) A tribunal case confirmed that for VAT purposes, the value of a part exchange vehicle in a new car sale is the amount agreed between the dealer and customer, not any estimated market value.
Manage Tax Payments with a Time To Pay Arrangement #004K2Partners
The document discusses the Time to Pay (TTP) scheme in the UK, which allows businesses struggling with cash flow issues to defer tax payments over a period of time. It notes that over 300,000 businesses have entered TTP arrangements since 2008, deferring over £5.2 billion in taxes. While the TTP is still available, some concerns have been raised that HMRC may be tightening eligibility criteria and reducing the length of payment plans. It is advised that businesses thoroughly review their finances with a business rescue advisor before entering a TTP to ensure long-term viability.
The document discusses changes in the legal services market driven by factors such as new entrants, client demand, talent supply, and substitutes. It outlines the traditional "OldLaw" model and contrasts it with the emerging "NewLaw" model characterized by alternative fee arrangements, process optimization, and a focus on efficiency. It notes consolidation and increased competitive intensity among incumbent firms, as well as the rise of in-house legal teams and outsourcing as substitutes. The legal market is transitioning to one with three segments: high-value specialized work, sophisticated daily work, and large-scale process work. Firms must differentiate to survive in this evolving landscape.
This document discusses outside investment in law firms, using the example of Australia which deregulated the legal industry. It summarizes the debate around allowing outside ownership of law firms, noting arguments on both sides. It also outlines how the traditional "BigLaw" model compares to the "NewLaw" model emerging from deregulation and new entrants. Finally, it provides options for traditional law firms to consider in response to changing market conditions, such as differentiating services, reducing costs, or investigating consolidation.
George Beaton: Outside Investment in Law Firms from ClioCloud9 ConferenceBeatonCapital
The document discusses outside investment in law firms, using the Australian example. It provides information on the number of law practices in various English-speaking countries/regions. It then discusses the traditional "BigLaw" business model and how it is changing, with the emergence of new models like "NewLaw" firms, which aim to provide legal services in a more efficient manner through the use of technology and flexible work practices.
This document provides an overview of tax issues relevant to businesses in the UK, including corporation tax rates and bands, research and development tax credits, pension contributions, entrepreneurs' relief, and tax treatment of company cars. It also discusses the potential tax benefits of declaring dividends versus bonuses for owner-directors and highlights various areas where professional tax advice can help businesses be more tax efficient and manage cash flow challenges.
Setting up a business in Finland is relatively straightforward. There are several options for legal structures, including sole proprietorships (Tmi), general partnerships, limited partnerships, limited companies (Oy), and cooperatives. Setting up a limited company requires a minimum capital of €2,500. The government provides loans and grants to support new businesses. Popular forms of entrepreneurship include franchises in areas like restaurants, retail, and services. Corporate income tax is 20% for most companies. Finnish business culture values efficiency, punctuality, and modest gifts.
Germany provides several programs to support entrepreneurs and new business founders. These include startup grants from the employment office for unemployed individuals, consulting services on entrepreneurial know-how through programs like ESF, and loans from the Reconstruction Loan Corporation (KfW) including different loan types for founders based on needs. Additionally, the EXIST foundation provides grants for technology and science-based startup ideas from university students. Overall, the German government has created a supportive environment for new business through advisory services, grants, and low-interest loans.
1) HMRC has issued new guidance on employers recovering VAT on pension fund management costs. The guidance recognizes that due to the unique structure of UK pension schemes, employers can reclaim VAT if they meet certain conditions, such as directly paying the fund manager.
2) An advocate general opinion found that holding companies can fully recover VAT on costs related to acquiring subsidiaries and raising capital as long as the activities are directly linked to the company's overall economic activities.
3) A tribunal case confirmed that for VAT purposes, the value of a part exchange vehicle in a new car sale is the amount agreed between the dealer and customer, not any estimated market value.
Manage Tax Payments with a Time To Pay Arrangement #004K2Partners
The document discusses the Time to Pay (TTP) scheme in the UK, which allows businesses struggling with cash flow issues to defer tax payments over a period of time. It notes that over 300,000 businesses have entered TTP arrangements since 2008, deferring over £5.2 billion in taxes. While the TTP is still available, some concerns have been raised that HMRC may be tightening eligibility criteria and reducing the length of payment plans. It is advised that businesses thoroughly review their finances with a business rescue advisor before entering a TTP to ensure long-term viability.
The document discusses changes in the legal services market driven by factors such as new entrants, client demand, talent supply, and substitutes. It outlines the traditional "OldLaw" model and contrasts it with the emerging "NewLaw" model characterized by alternative fee arrangements, process optimization, and a focus on efficiency. It notes consolidation and increased competitive intensity among incumbent firms, as well as the rise of in-house legal teams and outsourcing as substitutes. The legal market is transitioning to one with three segments: high-value specialized work, sophisticated daily work, and large-scale process work. Firms must differentiate to survive in this evolving landscape.
This document discusses outside investment in law firms, using the example of Australia which deregulated the legal industry. It summarizes the debate around allowing outside ownership of law firms, noting arguments on both sides. It also outlines how the traditional "BigLaw" model compares to the "NewLaw" model emerging from deregulation and new entrants. Finally, it provides options for traditional law firms to consider in response to changing market conditions, such as differentiating services, reducing costs, or investigating consolidation.
George Beaton: Outside Investment in Law Firms from ClioCloud9 ConferenceBeatonCapital
The document discusses outside investment in law firms, using the Australian example. It provides information on the number of law practices in various English-speaking countries/regions. It then discusses the traditional "BigLaw" business model and how it is changing, with the emergence of new models like "NewLaw" firms, which aim to provide legal services in a more efficient manner through the use of technology and flexible work practices.
This document provides an overview of tax issues relevant to businesses in the UK, including corporation tax rates and bands, research and development tax credits, pension contributions, entrepreneurs' relief, and tax treatment of company cars. It also discusses the potential tax benefits of declaring dividends versus bonuses for owner-directors and highlights various areas where professional tax advice can help businesses be more tax efficient and manage cash flow challenges.
Setting up a business in Finland is relatively straightforward. There are several options for legal structures, including sole proprietorships (Tmi), general partnerships, limited partnerships, limited companies (Oy), and cooperatives. Setting up a limited company requires a minimum capital of €2,500. The government provides loans and grants to support new businesses. Popular forms of entrepreneurship include franchises in areas like restaurants, retail, and services. Corporate income tax is 20% for most companies. Finnish business culture values efficiency, punctuality, and modest gifts.
Germany provides several programs to support entrepreneurs and new business founders. These include startup grants from the employment office for unemployed individuals, consulting services on entrepreneurial know-how through programs like ESF, and loans from the Reconstruction Loan Corporation (KfW) including different loan types for founders based on needs. Additionally, the EXIST foundation provides grants for technology and science-based startup ideas from university students. Overall, the German government has created a supportive environment for new business through advisory services, grants, and low-interest loans.
HMRC Taking a Tougher Line on Debt Recovery #036K2Partners
HM Revenue and Customs (HMRC) is taking a tougher approach to collecting unpaid taxes by increasingly using its powers to seize business assets and prevent companies from continuing operations. HMRC officers recently levied the distraint power to seize all assets of a company just two hours after a rescue adviser was appointed. This hardline approach comes after rejection rates for late tax payment plans doubled in 2010. While HMRC had previously supported struggling businesses, it is now prioritizing collection of tax debts over keeping companies operating.
This document discusses the process of starting a new business in Spain and other European countries. It provides details on the different types of business entities in Spain, including sole proprietorships and limited liability companies. It compares the procedures and costs associated with starting a business across several European nations, finding that Spain requires 13 days and €464 on average to incorporate a company. The document concludes with recommendations from the European Union to simplify business creation across member states.
Discover how to keep and motivate your most valuable assets, your employees, using Enterprise Management Incentive (EMI) options.
EMI options are versatile, tax efficient and incentivise employees to stay and develop your business.
You've spent long hours building your technology business. Now you want to inspire and retain the people who execute your strategies.
EMI options are effective, inexpensive, and appreciated by your team.
- Corporate tax rates range from 15% to 39% depending on taxable income, with eight tax brackets. Corporations with income over $18.33 million pay a flat 35% rate.
- Qualified personal service corporations such as architectural firms are taxed at a flat 35% rate.
- For a corporation with $300,000 in taxable income, the tax liability would be $100,250 normally, but $105,000 if it was a qualified personal service corporation.
This document summarizes a seminar on strategies for business growth. It discusses setting a growth strategy using the McKinsey Growth Pyramid model, various sources of funding for growth including debt, equity, tax credits and grants. Specific funding sources covered in more detail include R&D tax relief, EMI share option schemes, SEIS and EIS. Legal structures for taking on investors like shareholders' agreements and protecting intellectual property are also addressed.
Saving With A Tax Advantage - May 2012 - Active Business Seriesnevillebeckhurst
The document discusses various tax-advantaged savings opportunities in the UK, including pensions, Individual Savings Accounts (ISAs), Junior ISAs, Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS), Venture Capital Trusts (VCTs), and investment bonds. It notes that pensions provide income tax relief on contributions and tax-free growth. ISAs allow tax-free investment income and gains up to an annual limit. EIS and SEIS provide income tax relief and capital gains tax exemptions for investing in small companies. VCTs also provide tax reliefs for investing in small businesses. Investment bonds can defer capital gains tax until withdrawals are made.
This document discusses trends in share capital and shareholder agreements. It covers:
1) Tax issues facing entrepreneurs and increasing tax pressures, and how share types like flowering, waterfall, and freezer shares are used to encourage capital growth for tax benefits.
2) Common provisions in shareholder agreements for investors, employees, and joint ventures, such as reserved matters, drag-along rights, good/bad leaver clauses, and restrictive covenants.
3) Current trends in shareholder agreements including the use of SEIS/EIS, employee share schemes, pre-determined fair value buyout formulas, and provisions for mediation and privileged relations.
This document discusses the EV/EBITDA valuation multiple. It begins by providing background on valuation techniques and the emergence of EBITDA as a valuation metric. It then defines key terms like enterprise value and EBITDA. The summary discusses some limitations of using the EV/EBITDA multiple, including that it does not properly account for investment needs of the business, does not explicitly reflect risk, and does not account for differing tax rates between companies. The document advocates relating EV/EBITDA multiples to economic drivers of value like the spread between return on invested capital and cost of capital, as well as earnings growth.
Staying compliant in Canada: A discussion of the rules that govern HRM consid...BurCom Consulting Ltd.
This document discusses the rules that govern human resource management (HRM) considerations in Canada. It covers regulations from the Canada Revenue Agency regarding payroll deductions for income tax, Canada Pension Plan, employment insurance, and other requirements. It also discusses rules regarding workers' compensation, employment standards, and the responsibilities of employers to remain up-to-date and compliant with constantly changing laws and regulations from various agencies to avoid penalties. Maintaining orderly business records is important for compliance and avoiding disputes. Overall, the document emphasizes that HRM in Canada involves navigating a complex network of legal obligations.
[Philippines] Learn About Setting Up a CompanyFleire Castro
Perez Go Cimafranca Avanzado & Associates is a law and consulting firm founded by Perez Go Cimafranca, who has degrees in accountancy and law from USC and teaches various business courses. He is a partner at Perez Go Cimafranca Avanzado & Associates as well as other firms, and specializes in corporate law, IT, and business development. The document provides contact information for Perez Go Cimafranca's law firm in Cebu and Taguig, Philippines.
The document provides an overview and market report on indirect taxes in 2014. Some of the key points summarized are:
1) Indirect tax was cited as a key area of growth among the big four accounting firms and was gaining greater recognition among commercial organizations. This resulted in an increasingly buoyant job market in some sectors.
2) Greater scrutiny from clients on what they expect from advisors influenced consulting firm strategies and led to a more competitive indirect tax market. Getting tax compliance right in an increasingly regulated environment also remained important for many organizations.
3) The war for talent among large consulting firms continued, with demand for individuals with business development, client relationship, and technical skills. Retaining high performers also became more
This seminar examines the thinking behind SEIS and EIS, two tax attractive schemes available to UK companies seeking investment. It also examines the qualifying factors on whether a company will be able to seek the relief, whether the individual investor acquiring the shares is a qualifying investor and a summary of the hurdles and tripwires to avoid.
New Zealand - Proposed Employee Share Scheme ChangesMatthew Minnema
The New Zealand Inland Revenue Department released an issues paper in May 2016 proposing changes to the taxation of employee share schemes. The proposals aim to align the tax treatment of share schemes with cash payments by distinguishing between conditional and unconditional schemes. The changes may result in some share schemes being taxed earlier and higher taxes for employees. Employers and those with approved share schemes are encouraged to review how the proposed changes could impact them. Public submissions on the proposals are requested by 22 June 2016.
This document provides an overview of indirect tax rates around the world, broken down by region. It lists the standard VAT/GST rate and any other rates that may apply in each country. For example, in Africa it lists that the standard VAT rate in Botswana is 12% with no other rates, while in Egypt the standard rate is 10% with rates ranging from 5-15%. It also provides brief summaries of customs duty and how it interacts with other indirect taxes. The document aims to give readers a quick reference to indirect tax rates globally.
The document discusses South Africa's Youth Wage Subsidy program, also known as the Employment Tax Incentive (ETI). It provides an overview of the ETI, including how businesses can qualify, how to calculate subsidy amounts, and the process for receiving reimbursements from SARS. Key points include that few businesses are aware of or taking advantage of the ETI, which provides monetary benefits to employers; the ETI can result in cash refunds if the credit is greater than PAYE owed; and businesses have limited time remaining to apply for ETI reimbursements before the program expires or is extended in December 2016.
Increasing capital gains taxes would discourage investment when it is most needed to spur economic growth and job creation. [1] Studies have found that lower capital gains tax rates enhance economic growth and encourage entrepreneurship, benefiting all taxpayers with investments. [2] Higher capital gains tax rates cause lower levels of new venture funding and impact entrepreneurship decisions, which can impede job creation. [3] In short, increasing investment taxes is counterproductive for business and the economy.
Burford Capital 2016 Litigation Finance SurveyBurford Capital
Burford's 2016 Litigation Finance Survey shows that litigation finance continues to grow and evolve. Outside capital helps lawyers meet clients' need for cost containment without putting undue burden on the firm.
The document discusses project manager's knowledge areas. It focuses on the different types of knowledge and skills that a project manager needs to possess in order to successfully manage a project. These knowledge areas include integration management, scope management, time management, cost management, quality management, human resource management, communication management, risk management, and procurement management.
HMRC Taking a Tougher Line on Debt Recovery #036K2Partners
HM Revenue and Customs (HMRC) is taking a tougher approach to collecting unpaid taxes by increasingly using its powers to seize business assets and prevent companies from continuing operations. HMRC officers recently levied the distraint power to seize all assets of a company just two hours after a rescue adviser was appointed. This hardline approach comes after rejection rates for late tax payment plans doubled in 2010. While HMRC had previously supported struggling businesses, it is now prioritizing collection of tax debts over keeping companies operating.
This document discusses the process of starting a new business in Spain and other European countries. It provides details on the different types of business entities in Spain, including sole proprietorships and limited liability companies. It compares the procedures and costs associated with starting a business across several European nations, finding that Spain requires 13 days and €464 on average to incorporate a company. The document concludes with recommendations from the European Union to simplify business creation across member states.
Discover how to keep and motivate your most valuable assets, your employees, using Enterprise Management Incentive (EMI) options.
EMI options are versatile, tax efficient and incentivise employees to stay and develop your business.
You've spent long hours building your technology business. Now you want to inspire and retain the people who execute your strategies.
EMI options are effective, inexpensive, and appreciated by your team.
- Corporate tax rates range from 15% to 39% depending on taxable income, with eight tax brackets. Corporations with income over $18.33 million pay a flat 35% rate.
- Qualified personal service corporations such as architectural firms are taxed at a flat 35% rate.
- For a corporation with $300,000 in taxable income, the tax liability would be $100,250 normally, but $105,000 if it was a qualified personal service corporation.
This document summarizes a seminar on strategies for business growth. It discusses setting a growth strategy using the McKinsey Growth Pyramid model, various sources of funding for growth including debt, equity, tax credits and grants. Specific funding sources covered in more detail include R&D tax relief, EMI share option schemes, SEIS and EIS. Legal structures for taking on investors like shareholders' agreements and protecting intellectual property are also addressed.
Saving With A Tax Advantage - May 2012 - Active Business Seriesnevillebeckhurst
The document discusses various tax-advantaged savings opportunities in the UK, including pensions, Individual Savings Accounts (ISAs), Junior ISAs, Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS), Venture Capital Trusts (VCTs), and investment bonds. It notes that pensions provide income tax relief on contributions and tax-free growth. ISAs allow tax-free investment income and gains up to an annual limit. EIS and SEIS provide income tax relief and capital gains tax exemptions for investing in small companies. VCTs also provide tax reliefs for investing in small businesses. Investment bonds can defer capital gains tax until withdrawals are made.
This document discusses trends in share capital and shareholder agreements. It covers:
1) Tax issues facing entrepreneurs and increasing tax pressures, and how share types like flowering, waterfall, and freezer shares are used to encourage capital growth for tax benefits.
2) Common provisions in shareholder agreements for investors, employees, and joint ventures, such as reserved matters, drag-along rights, good/bad leaver clauses, and restrictive covenants.
3) Current trends in shareholder agreements including the use of SEIS/EIS, employee share schemes, pre-determined fair value buyout formulas, and provisions for mediation and privileged relations.
This document discusses the EV/EBITDA valuation multiple. It begins by providing background on valuation techniques and the emergence of EBITDA as a valuation metric. It then defines key terms like enterprise value and EBITDA. The summary discusses some limitations of using the EV/EBITDA multiple, including that it does not properly account for investment needs of the business, does not explicitly reflect risk, and does not account for differing tax rates between companies. The document advocates relating EV/EBITDA multiples to economic drivers of value like the spread between return on invested capital and cost of capital, as well as earnings growth.
Staying compliant in Canada: A discussion of the rules that govern HRM consid...BurCom Consulting Ltd.
This document discusses the rules that govern human resource management (HRM) considerations in Canada. It covers regulations from the Canada Revenue Agency regarding payroll deductions for income tax, Canada Pension Plan, employment insurance, and other requirements. It also discusses rules regarding workers' compensation, employment standards, and the responsibilities of employers to remain up-to-date and compliant with constantly changing laws and regulations from various agencies to avoid penalties. Maintaining orderly business records is important for compliance and avoiding disputes. Overall, the document emphasizes that HRM in Canada involves navigating a complex network of legal obligations.
[Philippines] Learn About Setting Up a CompanyFleire Castro
Perez Go Cimafranca Avanzado & Associates is a law and consulting firm founded by Perez Go Cimafranca, who has degrees in accountancy and law from USC and teaches various business courses. He is a partner at Perez Go Cimafranca Avanzado & Associates as well as other firms, and specializes in corporate law, IT, and business development. The document provides contact information for Perez Go Cimafranca's law firm in Cebu and Taguig, Philippines.
The document provides an overview and market report on indirect taxes in 2014. Some of the key points summarized are:
1) Indirect tax was cited as a key area of growth among the big four accounting firms and was gaining greater recognition among commercial organizations. This resulted in an increasingly buoyant job market in some sectors.
2) Greater scrutiny from clients on what they expect from advisors influenced consulting firm strategies and led to a more competitive indirect tax market. Getting tax compliance right in an increasingly regulated environment also remained important for many organizations.
3) The war for talent among large consulting firms continued, with demand for individuals with business development, client relationship, and technical skills. Retaining high performers also became more
This seminar examines the thinking behind SEIS and EIS, two tax attractive schemes available to UK companies seeking investment. It also examines the qualifying factors on whether a company will be able to seek the relief, whether the individual investor acquiring the shares is a qualifying investor and a summary of the hurdles and tripwires to avoid.
New Zealand - Proposed Employee Share Scheme ChangesMatthew Minnema
The New Zealand Inland Revenue Department released an issues paper in May 2016 proposing changes to the taxation of employee share schemes. The proposals aim to align the tax treatment of share schemes with cash payments by distinguishing between conditional and unconditional schemes. The changes may result in some share schemes being taxed earlier and higher taxes for employees. Employers and those with approved share schemes are encouraged to review how the proposed changes could impact them. Public submissions on the proposals are requested by 22 June 2016.
This document provides an overview of indirect tax rates around the world, broken down by region. It lists the standard VAT/GST rate and any other rates that may apply in each country. For example, in Africa it lists that the standard VAT rate in Botswana is 12% with no other rates, while in Egypt the standard rate is 10% with rates ranging from 5-15%. It also provides brief summaries of customs duty and how it interacts with other indirect taxes. The document aims to give readers a quick reference to indirect tax rates globally.
The document discusses South Africa's Youth Wage Subsidy program, also known as the Employment Tax Incentive (ETI). It provides an overview of the ETI, including how businesses can qualify, how to calculate subsidy amounts, and the process for receiving reimbursements from SARS. Key points include that few businesses are aware of or taking advantage of the ETI, which provides monetary benefits to employers; the ETI can result in cash refunds if the credit is greater than PAYE owed; and businesses have limited time remaining to apply for ETI reimbursements before the program expires or is extended in December 2016.
Increasing capital gains taxes would discourage investment when it is most needed to spur economic growth and job creation. [1] Studies have found that lower capital gains tax rates enhance economic growth and encourage entrepreneurship, benefiting all taxpayers with investments. [2] Higher capital gains tax rates cause lower levels of new venture funding and impact entrepreneurship decisions, which can impede job creation. [3] In short, increasing investment taxes is counterproductive for business and the economy.
Burford Capital 2016 Litigation Finance SurveyBurford Capital
Burford's 2016 Litigation Finance Survey shows that litigation finance continues to grow and evolve. Outside capital helps lawyers meet clients' need for cost containment without putting undue burden on the firm.
The document discusses project manager's knowledge areas. It focuses on the different types of knowledge and skills that a project manager needs to possess in order to successfully manage a project. These knowledge areas include integration management, scope management, time management, cost management, quality management, human resource management, communication management, risk management, and procurement management.
This presentation discusses the vast emigration of educated Iranians since 1979 when Iran transitioned to an Islamic republic. It notes that in 2013, Iran executed 529 people compared to 38 in the United States. It highlights how the lack of basic human rights and opportunities in Iran has led to a "brain drain" as many educated citizens leave, costing Iran's socioeconomic development. Interviews with experts suggest political reforms respecting civil liberties could help address this issue.
Strategic Instructional Materials is a company that provides educational resources and materials to schools. They have over 30 years of experience developing curriculum and tools to help students learn. Their products are research-based and designed to improve student outcomes in core subjects like math, science, and literacy.
MySQL Fabric: High Availability using Python/ConnectorVishal Yadav
This document discusses MySQL Fabric, which provides high availability and scaling capabilities for MySQL databases. It introduces MySQL Fabric as an extensible framework for managing farms of MySQL servers that provides high availability through availability groups and scaling out through sharding. It then covers installing and setting up MySQL Fabric, including configuring availability groups for high availability.
Los objetos de aprendizaje virtual (OAV) son recursos digitales reutilizables que están al servicio de la educación. Los OAV pueden generalizar contenidos, ser reutilizados en diferentes plataformas compatibles y facilitar el acceso remoto a la educación e información. Los recursos educativos virtuales son útiles para facilitar el proceso de aprendizaje y enseñanza al hacerlos más atractivos y flexibles.
Glen Poirier has over 15 years of experience in customer service roles in auto parts and retail. He is currently an HP Digital Press Operator at Print Fulfilment Services in Louisville, KY. Prior to this role, he worked in fulfillment services at Amazon and held various customer service and stocking positions at auto parts stores such as O'Reilly Auto Parts, Speedway, and Bumper To Bumper Auto Parts. He has a strong background in customer service and references are available upon request.
Juan Cardona invita al destinatario a una reunión programada para el domingo 19 de marzo a las 8 de la mañana en el salón comunal de Concepción Huista. La reunión forma parte de la calendarización de actividades ordinarias. Cardona espera la atención y puntual asistencia del destinatario al evento.
This document discusses software project management. It begins by defining project management and its goals of supporting smooth development and reducing problems. It then discusses the four key aspects of effective software project management: people, product, process, and project. For each of these, it provides details on important considerations and best practices. It also discusses project planning, monitoring and control, termination. Key activities covered in depth include effort estimation, metrics, and measurements.
This document discusses the effects of cannabis on dental implants for a 70-year-old male patient who smokes marijuana. It summarizes the patient's medical history, dental history, examination findings, proposed treatment plan, and a literature review on cannabis and bone healing. The proposed treatment plan involves placing dental implants in missing teeth areas. The literature review found some studies showing positive effects of cannabis constituents like cannabidiol on bone regeneration in animals and cells. However, more long-term human studies are still needed to strongly support the use of cannabidiol for bone healing and prevention of bone loss. The patient agreed to participate in a study on the effects of cannabis on bone levels after dental implant placement.
Las redes de computadoras se clasifican según su cobertura, topología y relación funcional. Según su cobertura incluyen PAN, LAN, MAN y WAN. Según su topología incluyen estrella, anillo, bus y jerárquica. Según su relación funcional incluyen cliente-servidor e igual a igual. Los componentes básicos de una red incluyen computadoras, placas de red, cables de conexión, hubs, switches y routers. Las transmisiones inalámbricas permiten expandir una red de forma flexible.
Zac Efron nació en California y creció en una familia de clase media. Comenzó a actuar a los 11 años en producciones teatrales escolares y tomó clases de canto. Sus primeros trabajos incluyeron apariciones como invitado en series de televisión y un papel en la película para televisión Miracle Run. Luego obtuvo un papel recurrente en la serie Summerland que se convirtió en un papel regular.
A deep dive into R&D tax credits for small and medium-sized enterprises (SMEs)Alexander Clifford
R&D tax credits for small and medium-sized enterprises (SMEs) is an unmissable opportunity for businesses in the UK to receive vital financial support for their innovation. Research and Development activities create a greener, more efficient and exciting future for our society, overcoming the industrial challenges with outside-the-box thinking. The UK’s government not only encourages their R&D endeavours but rewards through R&D tax relief. This article showcases the business benefits of the R&D tax credit scheme and provide all the information you need to understand the criteria and claiming process of said scheme.
Your guide to the Patent Box and Above The Line R&D tax creditSteve Leith
The document introduces two new UK tax reliefs for innovative companies taking effect from April 2013: the Patent Box and Above The Line R&D tax credit. The Patent Box sets the effective tax rate on profits from patents at 10%, while the R&D credit provides a 9.1% cash credit based on qualifying R&D expenditures. Eligibility and calculation rules are outlined for both reliefs. Frequently asked questions address concerns around qualifying criteria, benefits, practical application processes, and cash payments under the new R&D credit scheme.
This document discusses R&D tax incentives and reliefs for companies in the UK, including schemes for small and medium enterprises. It provides details on qualifying criteria for SME status, how enhanced deductions or tax credits for R&D expenditures are calculated, eligible R&D costs, exclusions, rules around state aid grants, the claims process, and introduces the new Patent Box incentive effective from 2013.
What firm need from the government
-high savings
- low-interest rates for investment
- sound property rights
- good governance
- rapidly expanding domestic market
- technologically motivated and committed workforce
Presenter - Simon Cook Company - SRC Accountancy Services Ltd
The area of tax for businesses is not straightforward, in fact it can be a real minefield for business owners. However, if you take a little time, and work with your accountant, it’s usually possible to find ways to save some tax.
This document provides information about funding and tax incentive programs in the UK to support innovation and research and development. It discusses the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) which provide tax relief for equity investments in small companies. It also summarizes R&D tax credits that reward innovation, the Patent Box that lowers taxes on profits from patented inventions, and various grant programs from Innovate UK including Smart Grants. The document provides guidance on eligibility and claiming these different innovation support programs in the UK.
Are you a privately owned business who is looking to take the next step. Whether you are considering growth or sale there are many things you need to consider.
Please review Gannons Solicitors and Chantrey Vellacott presentation on Structuring your business for growth.
Our team of R&D tax credit specialists has developed a comprehensive guide that serves as a vital resource for businesses aiming to capitalise on the potential of research and development tax relief. By delving into the intricacies of these credits, the guide offers valuable insights to diverse audiences, including entrepreneurs, business leaders, and decision makers. The eBook covers essential aspects such as eligibility criteria, qualifying R&D activities and costs, navigating the claim process, and more. It unravels complex tax incentives and empowers you with actionable insights to make well-informed decisions regarding your R&D tax claims.
Tax breaks for small businesses.
Covers R&D tax credits, the enterprise investment and corporate venturing scheme, the enterprise managment incentives.
This document provides an overview of Canada's Federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program. It discusses who benefits from the program, how the program works through examples, what activities qualify, common issues small businesses face in preparing claims, and recent changes made to the program. The SR&ED program provides tax credits and incentives to Canadian businesses conducting research and development. It aims to promote innovation and technology adoption, especially among small and medium-sized enterprises.
Startup Funding in the UK - a guide by @GrantTree, designed by @nandylenOrsolya Anna Tóth
This document provides an overview of startup funding options available in the UK. It discusses various sources of funding including government resources, grants, loans, crowdfunding, angel investors, accelerators, incubators, and venture capital. National and regional business advice services are also outlined. The document provides details on specific funding programs and amounts that can be requested. It emphasizes that not all startups need funding and encourages evaluating whether funding is necessary.
This document provides a summary of taxes in the UK, including income tax, corporation tax, VAT, and how to spread the costs of taxes through financing options from White Oak UK. It defines each major tax, how often payments are due, and tips for tax filing and claiming deductions. White Oak UK offers short-term loans to help businesses pay tax bills in installments rather than a lump sum. The loans can be arranged quickly online and provide cash flow benefits over using cash reserves.
This document provides information about UK Research and Development (R&D) tax credits, which are a government incentive program administered by HMRC to encourage innovation. Key points covered include eligibility requirements, how the credits work, statistics on amounts claimed and rates, qualifying and non-qualifying costs, schemes available for small/medium enterprises and large companies, an example calculation of savings, and a case study of a construction company that claimed over £257k in credits. The document encourages companies to use a tax consultant to help determine eligibility and successfully submit a claim.
Both with significant changes of interest to technology business
> Higher cash refunds as Provinces match increase in federal SR&ED expenditure limits
> Multi-Media and e-business get increased tax credits
> Ontario Tax Holiday for companies that commercialize University R&D
This document provides an overview of tax credits as well as common types of tax credits available in the US. It discusses the key differences between refundable and non-refundable tax credits and highlights several specific tax credits such as the Earned Income Tax Credit, Child Tax Credit, and various business tax credits. It also gives tips for maximizing tax credits such as staying informed of changing laws, keeping good records, consulting tax experts, and timing expenses strategically.
This document provides information about setting up a business and VAT rates in the Netherlands. It discusses:
1) Several legal forms a business can take such as sole proprietorship, partnership, or private limited company.
2) VAT rates of 19% for luxury goods and 21% for air travel which includes a 2% environmental tax.
3) Requirements for setting up a business including registering with the Chamber of Commerce and obtaining necessary permits from the tax authorities.
This document summarizes several topics from a newsletter:
1) It introduces Investors' Relief, which provides a 10% capital gains tax rate for investments in unlisted trading companies held for at least 3 years, similar to Entrepreneurs' Relief. Investors' Relief may benefit non-working investors and companies seeking capital as an alternative to EIS/SEIS.
2) It outlines the key eligibility criteria for Investors' Relief, including requirements for the shares, holding period, and that the shares must be newly issued.
3) It notes that while Investors' Relief and Entrepreneurs' Relief are similar, Investors' Relief is designed for non-working investors rather than shareholders
Similar to R&D Tax Credits Guide by @GrantTree (20)
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
R&D Tax Credits Guide by @GrantTree
1. Hello, we are GrantTree.
Here is all you ever wanted to know
about R&D Tax Credits.
2. Table of Contents
1. What are R&D Tax Credits?
2. What is an SME?
a. Smart Grant SME
b. R&D Tax Credit SME
3. Tax Credits and State Aid
4. What costs qualify
a. The Four Categories
b. Other costs which also qualify
c. Dividends, travel, subsistence costs
5. Technical Uncertainty
6. Who can claim
a. Unprofitable AND profitable companies
b. Company ownership and its impact on R&D Tax Credits
I. Linked Enterprise
II. Partner Enterprise
7. Lengthening or shortening your accounting period
8. R&D Tax Credits Capital Expenditure
9. HMRC Audit
10. Our Process
3. What are R&D Tax Credits?
R&D Tax credits are an HMRC initiative incentivising UK companies to invest more in
the development of innovative technology products. As a result, companies can get up
to 32% of their direct product development costs back in the form of tax relief.
R&D Tax credits are accessible whether you are profitable or not: it can either be
claimed as a reduction or refund of Corporation Tax, or as an additional tax loss which
can be surrendered for cash. A company can claim retrospectively for the last two
financial years, as well as an ongoing basis.
The thinking behind this is that most of the UK’s economic advantage and growth is
likely to come from its ability to deliver technological innovation, and the theory is that
proper tax incentives can help encourage more investment in this critical kind of
innovation.
R&D Tax Credits work by reducing your taxable profit (perhaps all the way into a tax
loss) and thereby dropping your Corporation Tax. However, even if you don’t owe any
Corporation Tax (or don’t owe much), the scheme can still provide you with cash in
exchange for “surrendering” some of the tax loss that has been created. In other words,
R&D Tax Credits can help whether you’re profitable or not.
How much can you get? Up to about 32% of your “qualifying costs” can be recovered.
That can make a real difference to cash-strapped startups - and just as much
difference to funded startups that are spending a lot of money on developing
innovative products.
STIMULATING TECHNOLOGICAL INNOVATION
the UK invests £11.5 million per day on R&D
up to 32% of your spend
as tax reduction or straight up cash
for profitable AND not profitable businesses
4. What is an SME?
Smart Grant SME
What’s a “Medium Enterprise” for the purpose of SMART grants? Small versus
Medium makes a difference in terms of what percentage of expenses you can
claim in the Development of Prototype grant.
According to the EU guidance on company size, an SME is essentially:
• Micro companies have under 10 staff, and either under €2m (under £1.75m)
of turnover, or under €2m of balance sheet total
• Small companies: under 50 staff, and either under €10m turnover (under
£8.78m) or under €10m of balance sheet total
• Medium-sized companies: under 250 staff, under €50m turnover (€43.9m)
or under €50m of balance sheet total
Interestingly, another related page on the EC site states the following interesting
facts about SMEs:
• More than 99% of all European businesses are SMEs
• Nine out of ten SMEs are micro enterprises
Hence, “the mainstay of Europe’s economy are micro firms, each providing work
for two persons, on average.
5. What is an SME?
R&D Tax Credit SME
Of course, this wouldn’t be a proper government definition if different parts of the government didn’t
have different definitions.
HMRC doesn’t use the same definition for Smart Grants and R&D Tax Credits. For R&D Tax Credits,
they use the following:
An SME is a company or organisation with fewer than 500 employees and either of the following:
• an annual turnover not exceeding €100 million
• a balance sheet not exceeding €86 million
Further info is here, but please note:
This definition of a SME for R&D Relief purposes is not necessarily the same as that used by HMRC in
relation to other areas of Corporation Tax or other tax areas such as PAYE, or by other government
agencies.
One additional hitch is that HMRC also considers aggregation a factor. What this means is that an
investor who is not an SME owns 25% or more of a company, then the company will probably not be
considered an SME (instead, the whole “group” will be considered in aggregate.
Exceptions
Of course, there’s no exception to the different rule without an exception to the exception to the
different rule, and there are in fact circumstances where a company can be considered to be an SME
even though 25% or more of it is owned by a larger company. The question rests on whether the
company can be considered “autonomous”. It is considered autonomous and (potentially) an SME in
the following circumstances:
• The investor(s) that own 25% or more are public investment corporations or VCs
• The investors are business angels and have not invested more than €1.25m
• The investors are university or non-profit research centres
• The investors are institutional investors, including regional development funds
• The investors are autonomous local authorities with annual budgets of less than €10m and fewer
than 5,000 inhabitants
The rules about this thorny topic can be found here. Our advice? If in doubt, ring up an HMRC agent
and ask them.
6. Tax Credits and State Aid
It’s important to know that as R&D Tax Credits at the SME level are seen as notifiable
State Aid, they can only be offered to companies not already receiving other notifiable
State Aid for the R&D project in question. The reasoning behind this restriction is due
to European rules on State Aid to prevent anti-competitive behaviour from member
states.
So, for the costs of a project receiving aid it is only possible apply for tax credits under
the large company scheme. (11% instead of 32%) The rule is very sensible and
pragmatic here, because it doesn’t go and disqualify your company from claiming R&D
Tax credits under the SME scheme altogether, but only for the particular projects that
received aid. This is likely to “result in the expenditure qualifying for R&D tax relief
partly under the SME scheme and partly under the large company scheme.” In short,
this means that you shouldn’t give up on the thought of claiming R&D Tax Credits even
if you are receiving some State Aid!
If you are running several projects for example,, and only one of them receives state
aid, the rest can still be eligible roof R&D Tax Credits under the SME scheme.
It’s also important to understand that not all grants or funding received necessarily
count as notifiable State Aid. If you are a recipient of some state funding, it’s good to
check with your provider whether the funding you are getting is defined as “notifiable
State Aid”. Notified State Aids are usually government funded grants such as the Grant
for Research and Development, or Innovate UK Smart Grants. These have by definition
been “notified to, and approved by, the EC.”
Either way, if you have received some funding via the government be it notified State
aid or not, it still could be possible to benefit from the R&D tax credit scheme.
7. What Costs Qualify?
The Four Categories
HMRC defines only 4 categories of qualifying costs:
• Direct labour: that is, employees paid directly by the company (e.g. on the payroll,
in the UK or elsewhere) to work on the project.
• External staff: staff hired from an external staff provider, but otherwise similar to
employees - i.e. directly employed on the project.
• Subcontracted R&D: parts of the project that have been extracted and parcelled
out to a subcontractor, typically with a specification for what needs to be delivered
and a subcontractor agreement or contract.
• R&D Consumables: things that were consumed in the R&D.
What are R&D consumables?
The original thinking behind R&D consumables is easily understood if you think of R&D
for physical products. In the process of building a physical, technically complex
product, you will create numerous prototypes to test the technology. These prototypes
will not be sold to consumers - they are a clear R&D cost. After the R&D, you may keep
some prototypes for sentimental reasons, but most of them will be scrapped. Labour
to create those prototypes is already covered by the other types of costs, but the
materials are covered in this category. For example, if you used £10k worth of
aluminium to build your prototypes, and scrapped all those prototypes, your R&D claim
should include the cost of that aluminium.
It’s important that the prototypes are actually scrapped. If you end up selling them to
consumers after all, they would not be considered part of the R&D project.
Other costs which also qualify
Other costs that qualify according to the HMRC web page:
• software licences
• utilities (power, fuel - but not data or telecommunications costs!)
• payments to clinical trial volunteers (of relatively little relevance to startups)
Dividends, travel, subsistence costs
With early startups and smaller companies, most of the costs of doing R&D are not
payroll. Many small companies do part-time consulting to pay the bills, and pay
themselves through the tax-efficient means of a basic, minimal salary plus dividends.
Moreover, as they are very cost- and tax-conscious, they do their best to pass costs
like subsistence and travel, where appropriate, through the company.
Since those same small companies tend to do a lot of qualifying R&D (usually, most of
the technical uncertainty is dealt with by the time commercial scale is reached and
more people are hired), the question naturally arises whether they can claim dividends,
travel and subsistence costs, incurred while working on R&D projects, in the cost of the
R&D projects, and therefore get R&D relief on it, in the form of some much needed
cash back.
Unfortunately, the answer is no. You can’t claim dividends, subsistence, business
entertainment, advertising, travel, rent, or any of a host of other categories that you
might think could be argued to fit into the costs of an R&D project.
8. Technical Uncertainty
In R&D Tax Credits claims, HMRC is looking specifically for what they call “technical
uncertainty”. If the outcome was uncertain only because of your own lack of experience in the
field, or for commercial reasons, then that’s not R&D. The project should be uncertain because
of technical reasons.
Who decides whether it’s uncertain? There, HMRC brings a mythical beast called a
“competent professional”. There’s no agreed definition of a competent professional in this
field, and there probably won’t be for many years to come. Levels of competency can vary by
staggering amounts between people who are gainfully employed in the industry.
So, it’s very difficult to pin down even this first point. What I would advise is to ask yourself:
were there any aspects to the project where you weren’t sure if that component could be built
to the required specification (requirements, performance, scalability, etc), or you weren’t sure
what it might look like once built, because the technical constraints were unclear and had to
be explored?
If the answer is yes, you may have an R&D project there.
Innovation
If your project achieved a technical feat that no other project has achieved, then it is likely to
be R&D. If it achieved something which few others have achieved, and if the knowledge of
how they did it is not commonplace knowledge that the mythical “competent professional”
would be aware of, then it could still be R&D. On the other hand, if what you’ve done has been
done a thousand times already and is common knowledge, then it’s probably not R&D.
For example, downloading Insoshi (a social networking engine in Ruby on Rails) and setting
up your own social network is not R&D.
On the other hand, taking Insoshi, which basically represents the state of the art of publicly
available knowledge, and heavily customising it and redeveloping fundamental components
to match your specific requirements and scale it up, is probably R&D.
So, the “thumb rule” there is that if you have smart and competent people with significant
formal qualifications spending a lot of time on the project, then it’s another hint that it may be
R&D. If you don’t, though, that’s not necessarily a negative signal.
9. Who Can Claim?
Unprofitable AND profitable companies
A common misconception about tax credits is the idea that you have to be profitable
for them to be worthwhile. In fact both profitable and unprofitable companies can get
up to 32.5% return.
The way that tax credits are calculated is that first you add up the “Qualifying
Expenditure”. This is the amount that you’re declaring has been spent on “qualifying
R&D”.
This qualifying expense is then “enhanced”, which artificially increases your expenses
for the year, and therefore reduces your taxable profit for the year, perhaps taking you
into a loss (or increasing your loss if you were already loss-making).
The way that this helps profitable companies is obvious: instead of paying tax on their
taxable profit, they pay less tax on a diminished (or eliminated) profit.
However, the scheme also allows companies to do something with the loss that’s
generated. They call it “surrendering” the loss. In effect, any loss generated by the
scheme can be surrendered for cash. This means that the loss is not carried over to
future years, and instead you get some cash for it right now. This is music to the ears of
loss-making startups.
Company ownership and its impact on R&D Tax Credits
One question that recurs, in the startup world, is how investments by VCs and other
investment bodies affect whether you can claim tax credits under the SME scheme,
which is considerably more lucrative than the large company scheme. There are basic
rules for determining whether a company is an SME, but this topic is worthy of a bit
more detail.
The key concept here is autonomy.
The main consideration, when applying for tax credits on behalf of a business which
has investors, is whether the business is autonomous. HMRC defines a business as
clearly autonomous if no external, corporate entity owns 25% or more of its shares.
Private investors, e.g. angels that operate as individuals rather than using a company
front, do not count towards this, unless, of course, they are somehow linked to the
corporate investors. If Sequoia Capital owns 15% of your company, and Fred Destin
(partner at Atlas Ventures) owns another 15% personally, your company is
autonomous. On the other hand, if Atlas and Fred Destin each owned 15%, you would
then be exceeding the 25% limit.
10. In this latter case, you would still count as autonomous, however, because
Sequoia is a venture company. HMRC explicitly allows up to 50%
ownership by:
• public investment corporations, and VCs,
• individuals or groups of individuals with a regular venture capital
investment activity who invest equity capital in unquoted businesses
(‘business angels’), provided the total investment of those business
angels in the same enterprise is less than €1.25 million,
• universities or non-profit research centres,
• institutional investors, including regional development funds,
• autonomous local authorities with an annual budget of less than €10
million and fewer than 5,000 inhabitants.
So, up to 50% owned by a single group of connected professional investors,
you’re still ok. If Autonomy (the company) owns 30% of your business, you
are not considered autonomous. If Atlas Ventures owns the same amount,
you are autonomous.
What if your company is 51% owned by such an investment corporation (or
group thereof)?
Then, unfortunately, you are no longer considered autonomous. The
question then becomes whether you are a linked enterprise, or a partner
enterprise. That can determine whether you are still considered an SME for
R&D Tax Credit purposes.
11. Linked Enterprise
In short, your company is considered to be linked to the owner of your shares if one of
the following is true:
• the other company owns more than 50% of the voting rights,
• they can appoint or remove a majority of your management team,
• they can exert a “dominant influence” over your company,
• they can indirectly achieve the above via agreements with other shareholders.
• Basically, if they control your company, you are “linked”.
It’s worth noting that the linkage can also happen via an individual, if you are in the
same industry. If you run a really small SME airline, and Richard Branson personally
owns 51% of your company, you are linked to any other companies which he owns 51%
or more of (and potentially to Virgin Airlines).
What happens then? Well, your figures are considered in aggregate. So, if you’re linked
to a VC fund that manages more than €50m, you’re no longer in the SME scheme,
and your tax credits become less than appealing.
Partner Enterprise
There is another case to consider - one where you’re not autonomous, but the other
company is not considered linked. For example, if Autonomy owns 30% of your
business, you’re a partner of Autonomy, but they don’t control you, so you’re not linked.
So what happens then? Well, you may have a chance. To figure it out, multiply the
shareholding by the turnover, balance and staff count of the other company. For
example, if you were 30% owned by Autonomy back when they only had €10m of
balance, they would only add €3m to your own balance, for the purpose of figuring out
whether you’re an SME. So if you had €1m of balance, adding the two together would
result in €4m, well under the SME limit.
If you had €1m of balance, and 30% owned by Autonomy when they were worth
€100m, your balance aggregate would be €31m - so you would still be an SME, even
though Autonomy would not be.
Finally, if you were 30% owned by Autonomy when they had €1b of balance, your
aggregate would be €301m, so you would not be an SME.
It works in reverse too!
As a final thought, it’s worth pointing out that this works both ways. If your company
owns more than 25% of a large company, you are considered in aggregate with that
company, so even if you have zero turnover, you will still not be considered an SME.
12. Lengthening or Shortening Your
Accounting Period
Many of the R&D tax-credit claims we submit to HMRC cover accounting periods
longer or shorter than the usual financial year. It is perfectly possible to adjust the
length of the claim period. A common reason for doing this is to suit a company that
wants to take advantage of the tax-credit scheme immediately after a significant
investment in a project.
The crux of the matter is the CT600 – your corporation tax return. This form can
account for a maximum of 12 months, so any accounting period longer than this will
involve two CT600s covering a period of a maximum of 18 months. Extending an
accounting period is allowed once every five years.
An alternative to extending the accounting period is shortening it. You can do this as
many times as you like. If your accounting year usually follows the fiscal year, but you
made large R&D investments in July, for example, it might make sense to claim for an
eight-month accounting period in January.
This would free up some capital to sustain the business until the beginning of the
usual financial year in March, when sales pick up and profits can be realised.
R&D Tax Credits Capital Expenditure
Accounts vs Tax
An important distinction which HMRC draws is between the P&L that’s presented in
the company accounts, and the tax calculations submitted to HMRC (also known as
CT600). The key take-away from all this HMRC text is that even if the expenditure is
capitalised in the accounts, it could still qualify for tax credits if it can be deducted from
the profits in the tax calculations.
This was discussed with HMRC directly and this is their answer in writing:
“If the labour charge is not prevented from being an allowable deduction (unlikely) and
it is capitalised in the accounts, then it can be included in the tax computation with an
enhancement to calculate the profit/loss for tax purposes. If there is no adjustment in
the CT computation, the relief is not due but the return could be amended.”
So, here it is, clearly enough: the expenditure can only obtain R&D Tax Credit relief if it
really is deducted in the CT computations. If you capitalised your R&D expenditure for
tax purposes, as opposed to doing so only in the management accounts, you can’t get
relief on it.
But…
But the return could be amended (for up to 2 years after it was filed). If you capitalised
your R&D expenditure for tax purposes for the last couple of years, and have suddenly
realised that actually, you’d like to get the R&D Tax Credit relief, please - you still can.
In this case, the costs would need to be decapitalised to be included in the claim.
Of course, this makes capitalising software development a somewhat bizarre exercise.
There are reasons (even good reasons) to capitalise software development, so if you’ve
done that, R&D Tax Credit relief may not be enough of a carrot to get you to undo it.
But at least it’s nice to have some clarity about it all, at last.
13. HMRC Audit
Getting audited by HMRC sounds really scary, of course, so waving the threat of an
“audit” would be a great way to convince clients to sign up with a specialist firm - but
we believe that our service is valuable even without the vague threat of an undefined
“audit”, so here’s a clear outline of what typically happens when HMRC receives your
R&D Tax Credit claim and have questions.
The default case: everything goes fine
If the claim has been prepared competently, and doesn’t include any “attention-
grabbing” mistakes (like claiming a percentage that’s unnaturally high for your
industry), it will probably sail through.
This happens to most of the claims that we’ve filed at GrantTree. It is relatively rare for
HMRC to have questions about a well presented, well explained, clear and reasonable
claim.
A likely case: “we have some questions”
If there is anything unclear or slightly unusual about the claim, then what’s likely to
happen is that an HMRC Inspector from an R&D Specialist Unit will get in touch with
some questions. Those are usually either requests for clarification, or discussions about
specific costs that were included in the claim and shouldn’t have (this happens even
when using a specialist to handle your filing, as the line of what HMRC will accept and
reject does shift over time).
This is generally a friendly call, and doesn’t take too much time. It can be handled by
email entirely, but in our experience, picking up the phone can resolve, in half an hour,
something that would have taken weeks by email.
Less likely: “we’d like to meet you”
The next step up, which happens more frequently with first-time claimants, is that
HMRC wants to come and meet the company in person. This is, again, a friendly
meeting - at least it’s supposed to be.
When our clients end up meeting the inspectors, we always explain in detail what
might happen if HMRC decides to dig their claws in (to use a gentle metaphor), so they
are prepared and understand how the scheme works, what is R&D, what HMRC’s likely
lines of questioning are, etc.
However, usually this type of meeting should be very friendly and not concerned with
pushing back on the claim.
Unless they find out that you misfiled part of the claim, the result of this meeting
should be that the claim is approved and paid. If part of the claim has indeed been
incorrectly filed, then HMRC would expect a corrected version to be sent before they
pay out the money.
Even less likely: the aspect enquiry
If HMRC is quite certain that a substantial part of the claim is incorrect, then they are
likely to launch into the next level up: an aspect enquiry.
This sounds more scary, and it should - it is now an official enquiry into an aspect of
the Corporation Tax filing: the R&D Tax Credit aspect, specifically. This will always
involve a formal meeting, with specific questions that HMRC wants answered before
the meeting and during it.
14. That said, it still sounds more scary than it is. There’s a number of reasons why.
First of all, the meeting is not, should not be, need not be confrontational. In fact, it should always
be seen as a collaborative effort. The claimant and the HMRC inspector are, together, trying to
figure out what should have been claimed. Unless the claimed amount is patently ridiculous, HMRC
will never walk into the meeting and start throwing accusations around. Strained arguments may
(and do) occur in the course of the discussion, but they are not aimed at people, but at resolving the
matter at hand.
Secondly, unless your claim really was completely spurious, the likely outcome will be that part of
the amount will be accepted and part will be rejected. After all, you do have a valid R&D project,
right? HMRC Inspectors are fairly pragmatic, and they will look to come to a reasonable conclusion
(that fairly represents your project) within the duration of the meeting.
Finally, when they hear “HMRC Aspect Enquiry”, most people have visions of endless investigations,
never-ending hassle, and HMRC progressively digging into every aspect of the company’s tax
return. Actually, that is explicitly not the goal of the aspect enquiry - it is limited to a specific aspect.
In the letter announcing the enquiry, HMRC do mention that they reserve the right to turn this into a
full enquiry, of course, but unless your business is very shady indeed, that’s not going to happen.
Obviously, if you’re running a money-laundering operation, misfiling a tax credit claim is a very, very
bad idea - but I think that those few people insane enough to run money-laundering operations in
the UK already know this.
Pragmatic HMRC
It’s somewhat unexpected to see these two words together, but HMRC inspectors from the R&D
specialist units are actually a very pragmatic bunch (as opposed to dogmatic and inflexible, as they
are often perceived). They’re not looking to scare companies into not filing, but they have a duty to
the government to do their best to ensure that claim amounts fairly represent the R&D that’s been
going on, according to HMRC’s elaborate definition.
So long as you take a similar view, and work with the inspector to dig out the truth, rather than
against them, even an Aspect Enquiry need not be all that scary.
15. Our Process
How do we work?
Maximise the claim, while minimising the risk
We maximise your claim by analysing your accounts, making sure we include
every eligible expenditure.
Industry experts will write your technical narrative, the argument to HMRC
about what you are developing and why this is deemed R&D. The
combination of domain expertise and knowledge of HMRC’s preferences
results in our 100% success rate.
Any questions and queries coming from HMRC after filing the claim are
handled by GrantTree. On rare occasions, the verification of the claim
involves a face to face interview with HMRC; should that be the case we will
come an hour early to your offices to prepare your case, and defend your
claim with you.
Turning your claim around quickly, with minimal disruption to your business.
We understand that your priority is building your business. We have designed
all our processes to require only the minimum amount of time and effort: it
only takes a couple of hours from your team to go through the financials and
development work.
During our unique process, a team of several people with relevant expertise
within your sector verifies each and every claim. This ensures a focused
attention on every step of the way as well as a fast progress.
The whole process from signing the contract to receiving the money typically
takes 2-3 months and we could file your claim in less than that, providing we
receive the financial and technical data speedily.
Ask a specialist!
We’ve done our best to explain the criteria, but ultimately, a final answer
should be obtained from someone who knows these criteria inside out
and deals with HMRC on a regular basis. Most specialist firms will tell
you whether your project qualifies free of charge, so it’s definitely worth
having a chat even if you plan to file by yourself.
That can be us or somebody else, but the point is, it’s free, so you might
as well take advantage of it. It’s an “I know it when I see it” type of thing,
so it won’t take that long and we look forward to you getting some of
your money back from HMRC in the near future!