The government has endeavoured to create an environment where businesses can succeed and prosper within the UK. This is demonstrated by the number of different Tax Relief regimes that have been created to support businesses large and small in various circumstances. Some of the main Tax Relief schemes available to UK businesses are detailed below:
There are three R&D Tax Credit regimes that support companies undertaking qualifying project in science and technology. Depending upon the size of your company and the nature of the costs incurred the benefit can be up to 26% of the qualifying expenditure.
Patent Box Relief (also known as Intellectual Property Box Relief) is a government incentive that allows companies to use a 10% corporation tax rate from its patented inventions. Qualifying profits arising from the Patent Box are then applied to the 'nexus formula' to calculate the companies tax liability. More information can be found from HMRC.
The Annual Investment Allowances dictates the value of qualifying items that can be deducted from profits before tax. This currently stands at £200,000 (following a reduction from £500,000 from 1st January 2016).
The employment benefit allows businesses to get up to £3,000/year off their Class 1 National Insurance bill (however if you pay more than this amount then the Employment Allowance benefit will no longer be available. Please see further details on the HMRC website.
The Seed Enterprise Investment Scheme (SEIS)
Through the SEIS investment scheme, up to £150,000 is available to investors who buy shares in companies that are less than two years old. More information is available on the HMRC website
Creative Industry Relief
There are eight different tax reliefs available to companies working in the creative sector that either allows companies to claim a larger tax deduction or a cash credit. To qualify for the creative industry tax reliefs, all media (films, tv programmes, computer games, animations etc) must pass a specific test to formally verify (through the British Film Institute) that the company can qualify. More information is available on the government's website.