Are you paying too much tax on your inventions?

Inventive companies are failing to claim tax reductions, claims R&D accountancy firm Kingly Brookes.

In particular, they are not taking advantage of Patent Box, part of the Government’s growth agenda.

“The aim of the Patent Box is to provide an additional incentive for companies to retain and commercialise existing patents and to develop new innovative patented products,” said the Government. “This should encourage companies to locate the high-value jobs associated with the development, manufacture and exploitation of patents in the UK and maintain the UK’s position as a world leader in patented technologies.”

“It was introduced by the UK Government on 1st April 2013, enabling businesses to claim a lower rate of corporation tax on profits made on their patented inventions, providing certain requirements are met,” said Kingly Brookes. “The scheme is being phased in until April 2017, at which point 100% of the income earned on these inventions will be taxed at a rate of 10%.”

To simplify understanding Patent Box, the accountancy firm has pulled together an overview of the scheme, based on original Government literature.

steve bush

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via Yuichun