Every business, irrespective of size, has employee expenses to deal with. While a small company might just have a fraction of the employees of a huge corporation, it is easy to lose track of outgoings if expenses are not properly managed. Whether these costs account for tea bags or expensive IT software, failure to effectively track expenses can lead to profit dents – especially for small firms with narrow margins.
Reporting in Real Time (RTI) has been in effect for the majority of UK business owners for well over a year now. While the system has worked well for most of these businesses, there also has been a fair share of criticism.
Many business people and entrepreneurs are so focused on growing their business that the last thing they have considered is life beyond work. Not many business owners have worked out their exit strategy options and how they will ensure an income stream in years to come.
For small businesses, everyday costs are critical. Whether considering the price of stationary or coffee, expenses must be kept to a minimum to ensure company accounts stay in the black. Some things will always be too important to cut out completely, but there are ways to help day-to-day activities remain cost effective.
Expense management is often seen as a dull yet necessary task, but did you know that badly managed expenses processing is actually costing employees and businesses money?
All over the world, governments are taking steps to drive economic growth by helping make more credit available to small and medium-size businesses. The Bank of England has shifted the focus of its Funding for Lending Scheme (FLS) from the mortgage market to SME lending, while the Chinese government has issued a mandate for banks to increase SME lending while ensuring that they remain Basel compliant.
In simple terms, the Patent Box is a regime that provides a reduced rate for corporation tax on profits derived from the exploitation of patents.
It is quite a complex regime, however, and qualifying for it has many various requirements. Furthermore, it applies to a number of different scenarios which include patents and products, so careful consideration must be taken to ensure companies benefit from it.
Following on from part 1 in the series on Patent Box, part 2 covers how it is calculated and what processes are involved.
In part 1 of this series on Patent Box we covered what it is and where it is available. Part 2 covered how it is calculated and what processes are involved. In this final part, we give our view.
Largely because of its strong technology base and reliable legal infrastructure, the UK is the world leader in patented technologies, a position that the government is keen to reinforce with the introduction of a new 10% corporation tax rate on profits derived from patents and certain other intellectual property.