Accountants for Tech Startups in London

Accountants for Small business Technology  Startups

Similar to pioneering tech startups and the creative thinkers that start and run them, GM Professional Accountants stated objective is to provide revolutionary accounting solutions that are not only innovative but also revolutionary. These are solutions that are in line with the innovative mindset of the company or its team.

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It is never easy making the transition from solo entrepreneur where one operates alone, taking in and trying out tons of ideas to a structured incorporated company life. It can be an intimidating experience though it could be a life changing move that takes your business to the next level.

Right from the get go, you get access to several benefits the UK government makes available to media and tech companies that come up with innovations or new products in the sector. One of the best ways to get access to these benefits is by having an incorporated company.

Research & Development

Most tech companies will spend a significant amount of money on Research and Development R&D at some point. R&D expenses, particularly for small and medium sized companies, can get you some generous corporation tax relief from the HMRC. Since 1st April 2015, small and medium sized businesses have been eligible for tax relief of up to 230% on R&D costs. As such, every 2000 in expenses that qualify could result in corporation tax reduction of 2600 in addition to the amount spent by the company. It is an innovative scheme in itself that also comes with an 11% tax credit on any qualifying R&D spend, that the company is eligible for in certain circumstances. Companies also get R&D capital allowances and provide 100% tax relief on any capital asset acquisitions intended to be used for R&D purposes.

To qualify for tax relief, a company’s R&D has to have made a direct contribution to technology or science fields.

Both R&D capital allowances and R&D tax relief may be claimed in the corporation’s annual tax return

Patent Box
If your corporation has any profits from patents and other inventions’, you will have to pay a corporation tax rate of 10% on any profits that come from:
1. The use of the said patent in trading in furthering the company’s business
2. Selling or licensing such rights
3. Selling the innovative products or products associated with the patented invention
4. Compensation from an infringement

Implemented over 5 years the taxation regime is referred to as the patent box regime. Businesses started getting the generous benefits of the patent box since 1st April 2017.

GM Professional Accountants have office located in London, Manchester and Essex,

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