The Patent Box is a generous tax incentive that reduces the rate of Corporation Tax a business pays on profits from patents and patented products.
If your application is successful, a 10% Corporation Tax is applied on earnings from your patented inventions, rather than the standard 19% Corporation Tax rate.
Even better, tax savings from the Patent Box can be claimed alongside Research and Development (R&D) Tax Credits - and we can help you claim for both.
"Acconomy have been instrumental in helping us understand our accounting requirements, tax benefits available, how the business should be structured to incentivise employees through an employee share option scheme and what the consequences were when trading in other countries. Acconomy have helped behind the scenes from conception to the thriving business we have today"
- Wen Nivala, Director, Apption Labs Ltd
Working closely with trusted partners, our financial planning and wealth management services can help you make your money work harder for you, whether you’re planning your retirement, or wanting to safeguard your business for the future. Here are the areas we can support you with:
We’ve helped a number of clients successfully achieve Patent Box status and we can help you too. Essentially, the Patent Box regime is an HMRC scheme that rewards innovative businesses with a lowered Corporation Tax, by incentivising them to keep their Intellectual Property within the UK.
The conventional wisdom is that it’s a waste of time trying to register patents. It’s expensive and someone somewhere will still copy your idea, so what’s the point?
But, if the objective is to find sufficient IP to allow a patent on one aspect of your IP, then you can qualify for the Patent Box tax break that halves the Company’s tax liability. We can arrange for an Intellectual Property “Harvest” to be carried out for a modest fee to ascertain whether your company could be eligible.
Not sure if the Patent Box is relevant to your business, or how you can benefit?
You could be a eligible for the Patent Box if you:
And with Corporation Tax due to increase from 19% to 25% from April 2023 for businesses with profits over £250,000, there’s no better time to get started. You could even backdate claims to cover profits raised during the “patent pending” phase.
IP protection goes hand-in-hand with this, and we partner with IP experts for this reason. Talk to us about how you can maximise your tax relief through these avenues.
We go beyond the day-to-day when it comes to compliance processing for startups and entrepreneurs. Work with Acconomy as your Intelligent Virtual Back Office and you’ll have clarity on your business finances through our expert planning and advice for the lifetime of your business. Our support provides both everyday accounting services as well as long-term high level planning to ensure the greatest opportunity for growth and success.
We’ll see where your business is today, and help you discover what it needs to thrive tomorrow. Our approach is cloud-based, meaning that we can easily (and securely) scale our support for you as your business grows, using tools like Xero, QuickBooks Online and Xledger to streamline your accounting processes.
Not only that, but we also provide specialist financial help through our trusted strategic partners, including funding, grant claims and tech stack development.
Nigel Simmons FCCA
Acconomy Chartered Certified Accountants
Are you a serious startup looking for guidance and insight? Are you a growing SME looking for assistance in moving to the next level? Maybe you're based outside the UK and need a local partner for on-the-ground support?
Whatever you’re looking for, please get in touch. We’d love to discuss further how we can help.