Monthly Archives: October 2013

RTI time limit – extension for SME’s

Since April 2013 almost all employers must report payroll information online to HMRC when or before any employee is paid. This information includes details of employees, their pay, tax and national insurance deductions.

HMRC had previously recognised that some small employers who paid employees weekly, or more frequently, but who only processed their payroll monthly, may have needed longer to adapt to reporting PAYE information in real time. As a result they had agreed a temporary relaxation of reporting arrangements for small businesses with fewer than 50 employees. This allowed small businesses who found it difficult to report every payment to employees at the time of payment, to instead send the information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

This was originally to apply up to 5 October 2013. However, HMRC have announced that they are planning to extend the temporary extensions to 5 April 2014. After the relaxation period ends all employers will be required to report PAYE in real time each time they pay their employees.

If you feel that you could benefit from this temporary extension please contact Stephen Charles on 0114 2667141 or email sac@hawsons.co.uk for further advice.

Disclaimer – for information of users: This briefing is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this briefing can be accepted by the authors or the firm.

Tax savings for patents

If you own or exclusively licence patents our specialist Patent Box tax advisors can help you maximise the significant tax savings you are entitled to.  

We thought it would be useful to remind you that the Patent Box legislation took effect from 1 April 2013. This includes accounting periods straddling that date. Where a company has ‘qualifying patent box income’ a new 10% rate will eventually apply to all such profits. The rate is being phased in over a four year period such that 60% of eligible profits are initially subject to the lower rate.

Who is eligible?
 

The starting point is to consider whether your company or group is eligible. It is available to companies liable to UK corporation tax which own or exclusively licence patents from which qualifying patent related income is derived. The patents must have been granted by the UK Intellectual Property (IP) office, the European Patent office or by other IP offices in specified EEA countries.

A company, whether independent or in a group, must have carried out the development work in respect of the patented item or process in order to qualify. In addition, a group company may qualify where another group company was involved in the development process. This is subject to the requirement that the group company making the claim is actively involved in the management and decision making of its portfolio of eligible patents.

For further information on what is qualifying patent related income please do contact Stephen Charles at sac@hawsons.co.uk to review whether your company or group could qualify.

Disclaimer – for information of users: This briefing is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this briefing can be accepted by the authors or the firm.