Accountants without hassle
Serving the high-tech and creative start-up community and entrepreneurs
Simply upload on our website, drop in DropBox, email a pdf, or take a photo with your smart phone, or send in your paperwork (in one of our pre-paid envelopes) to our qualified staff and we will do all the bookkeeping, entering your transactions on to the accounting system.
We take care of it
See all your bank balances, invoices, bills and expense claims at a glance. Interactive graphs show money going in & out.
Send all your paperwork, and we will do all the bookkeeping, entering your transactions on to the accounting system.
We are always there for you, we offer unlimited customer support by phone and email.
What is an R&D tax credit?
R&D takes place when an activity seeks to achieve an advance in science or technology. The tax credit, which was designed to encourage innovation, allows costs – mainly for staff and consumables – to be claimed back from HMRC as either a cash credit or a reduction in the company’s corporation tax bill. There is no set industry where R&D can take place so it can apply widely, from science and technology through to manufacture and design.
What are the benefits?
If a small company qualifies for R&D, the allowable costs are grossed up by 225%. A percentage of the grossed up figure –11% in 2013/14 – can then be claimed in cash from HMRC immediately. For example, if you have spent £200k on qualifying R&D activities, it is grossed up to £450k, and a cash credit of 11%, i.e. £49,500 is paid back to the company. Alternatively the grossed up figure of £450k can be set against the company’s corporation tax bill. The rules are slightly different for large companies.
Latest figures from HMRC show that £420m credits were paid out to 9,875 small and medium sized companies last year, an average of £43k per claim. The majority of claims were made by companies in London and the South East.
We have a team of professionals ready to assess whether you qualify for R&D and to put forward your claim to HMRC. Please contact us for more information.
and capital gains tax breaks on their investment in your start-up.
What are the main benefits?
The investor receives an income tax saving of 50% in the size of the investment. For example investors spending £150,000 will
receive a reduction in their income tax bill of £75,000.
There is no capital gains tax to pay when the investor sell their shares, which can be up to 28%.
What are the conditions for the scheme?
Your company must be less than two years old.
Your company must be considered ‘small’ by HMRC.
Your company can receive no more than £150,000 in SEIS investment.
The investor must hold the shares for three years in order to obtain the full tax reliefs.
If you are looking for investment in your start-up, investors are most likely to expect you to be SEIS registered. It is the most cost effective form of investment available in the UK at the moment. Investors spending £100,000 will receive £50,000 back initially in the form of a reduced income tax bill. In the event that your start-up fails and the investor does not receive any of their investment back, they will have a capital loss of up to 28%, i.e. £28,000. So, in a worst case scenario, an investor spending £100,000 will receive back a total of £78,000 even if your start-up doesn’t succeed.
We have a team of professionals ready to assess your eligibility for SEIS. Please contact us for further information.
WHAT IS AN EMI?
The EMI is a tax advantaged HMRC approved share option plan designed to help a wide range of companies attract and retain employees who possess the skillset to help them grow and succeed.
HOW DOES AN EMI WORK?
Employees whom you select to participate are granted an option to buy shares in your company, paying a fixed price if they do decide to buy the shares (exercise the option.) Often the price will be the value of the shares when the EMI option is granted. There is no obligation to exercise the option, so if the share price doesn’t rise employees would be unlikely to exercise.
WHAT ARE THE BENEFITS OF AN EMI?
An EMI allows a company to reward employees without immediately diluting the holdings of existing shareholders and encourages staff loyalty and long service. The scheme is relatively simple (and therefore cost effective) to implement and avoids the immediate tax and national insurance costs that can arise on awarding shares to employees. EMI is also significantly more tax efficient compared to unapproved options as any growth in the value of the shares after grant is taxed as a Capital Gain.
PERFORMANCE CONDITIONS FOR EMI SHARE SCHEMES
Individual performance conditions can be attached both to the grant and the exercise of each EMI share option, and EMI share options can therefore be used as powerful short term or medium term incentives, or both. There is no statutory minimum exercise period.
Companies offering options under the Enterprise Management Incentive do not need prior approval from HM Revenue and Customs but EMI share options must meet detailed conditions and annual scheme returns are required.
Private companies can create an internal market in their shares by means of an Employee Benefit Trust (EBT).
DOES MY COMPANY QUALIFY FOR AN EMI?
There are a number of legal requirements which companies must satisfy in order for their share options to qualify as EMIs, including:
The company must carry on a “qualifying trade”. If the option is for a group of companies, at least one company in the group must carry on such a trade; The company (or group of companies) must not have gross assets exceeding £30m; The company whose shares are used may be listed or unlisted on a stock exchange, but it must be an independent company. This means that, in the case of a group of companies, the options must be over shares in the parent company to meet the EMI requirements; The company (or group of companies) must have fewer than 250 full-time equivalent employees at the time the share option is granted.
The shares used for EMI options can be subject to restrictions, but they must be ordinary shares which are ‘fully paid up’ (for company law purposes) and not redeemable or convertible.
WHAT ARE THE LIMITATIONS OF AN EMI?
250 EMPLOYEE RESTRICTION
The company must have fewer than 250 full-time equivalent employees. A full-time employee is one who works 35 hours a week or more, and the company must include fractions representing part-time employees. Non-executive directors, overseas employees and employees of “qualifying subsidiaries” in which the parent company owns a controlling stake, must also be counted.
WHO CAN PARTICIPATE IN EMIS?
In order to qualify, participating employees including executive directors must spend at least 25 hours per week or, if less, 75% of their working time, on the business of the company or group of companies.
LIMITS ON GRANT OF EMIS
There is a company limit of £3m on the total value of shares (as at the grant date) which may be available under EMI options at any given time. There is also an individual limit on the value of shares (as at the grant date) which any one employee may hold under the EMI option. This limit is currently £250,000.
WHAT ARE THE DISADVANTAGES OF AN EMI?
You may feel cautious about allowing others to acquire ownership rights in your company. Where necessary this might be addressed by, for example, granting options over non-voting shares or allowing option exercise only on a sale of your company
Depending on the size of your company, the value of options granted may be treated as an expense against profits, so there may not be an accounting advantage for options compared with cash bonuses.
You will need to spend some time when setting up your EMI plan in designing it in a way which meets your own company’s needs and you will need to take time to communicate it clearly to participants
HOW LONG DOES AN EMI TAKE TO SET UP?
In our experience, it is hard to provide fixed costs (with any degree of accuracy) or package up the sorts of work we undertake and this sort of area would be no exception. We find that one size virtually never fits all and what we offer is technical expertise coupled with a personal touch and a very commercial approach – the way we work is difficult to commoditise.
We are always very careful, though, to ensure that we scope out the work properly before we start, taking into account the complexity of the matter and the client’s needs and objectives, and provide a considered and tailored cost estimate to the client at the outset. This enables them to make an informed decision about whether they wish us to represent their interests without fear of unpleasant surprises at the end of the matter when the time comes to us rendering an invoice.
If you would like a free consultation to discuss potentially implementing an EMI option plan, contact us.
This comes with the latest online accounts technology so you can access all your financial information 24/7 from any device including ipad or tablet PC, smart phone and any connected internet device.Contact Us
Deal with any HMRC correspondence
Corporation Tax return
Income Tax Returns for 1 director
iXBRL Filing to HMRC and Companies House
The book-keeping is free where there are less than 10 transactions per month
|most popular package|
|Deal with any HMRC correspondence|
|Corporation Tax return|
|Income Tax Returns for 1 director|
|iXBRL Filing to HMRC and Companies House|
|The book-keeping is free where there are less than the number of transactions per month||10||15||30|
|Preparation and submission of quarterly VAT returns|
|Payroll up to 5 Staff|
|Unlimited customer support by phone and email.|
|Dedicated professional accountant|
|Company secretarial including submission of annual return|
|Annual meeting to review accounts and to discuss any issues|
|Annual tax planning review|
|Quarterly Management Accounting – Cloud-Quarterly Virtual FD Review (20 minutes per quarter on Skype)|
|Bench marking report against the best in your industry (One page)|
|Bench marking report against the best in your industry (Detailed)||Start from £50 per month|
|Business and personal tax planning reviews, profit extraction strategies||Start from £75 per month|
|Weekly Management Accounting – Cloud-weekly Virtual FD Review (20 minutes per week on Skype)||Start from £450 per month|
|monthly Management Accounting – Cloud-Monthly Virtual FD Review (20 minutes per month on Skype)||Start from £150 per month|
|Board Meeting Attendance||Start from £150 per month|
|Annual profit and cashflow forecast and planning||Start from £100 per month|
|Annual business valuations||Start from £100 per month|
|Tax enquiry fee protection||Start from £120 per year|
|Company secretarial including filing your annual return||Start from £85 per year|
|VAT for every 3 months||Start from £30 per month|
|Payroll up to 5 staff||Start from £25 per month|
Book-keeping: we charge £40 per additional 50 transactions per month for book-keeping over and above the inclusive amount.
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