articles: Technology & media

Making Tax Digital: are you ready for April 2019?

The taxman is embracing digital technology – and that means businesses need to as well. HMRC’s Making Tax Digital (MTD) initiative goes live from 1 April 2019 – so the clock’s ticking. It’s time to make sure you can meet the new requirements for digital record keeping and understand the new mechanism for submitting VAT returns to HMRC.

Why a financial model can help put your best business foot forward

Businesses seeking capital are faced with an obligation to provide financial projections to potential stakeholders. Frequently businesses are not resourced to present financial projections in the form of a bespoke and dynamic financial model as this is a specialised area of finance. However the ability to provide a well-built dynamic financial model can make a company more investable, on the basis that the underling business model is sound.

Powered by people and technology in 2018: the technology sector view

Our survey, completed by 652 business leaders from across the UK, reveals remarkable resilience amongst owner managed businesses (OMBs) with many performing better than expected last year. This view is shared in the tech sector where businesses have more confidence this year, reflecting recovery from the Brexit referendum result. 75% of technology OMBs are somewhat or very confident about the general outlook for 2018 – up from 67% in last year’s survey.

Dame Treasury and the taxing of tech giants

The UK government is currently reviewing responses to a position paper that explores a potential new revenue based interim tax to be used to target technology companies on the value generated by their users. Ken Almand, Transfer Pricing Partner, breaks down the issue in simple terms through the medium of a Christmas pantomime.

The tax treatment of website costs

HMRC’s annually published ‘Capital v Revenue Expenditure Toolkit’ and their manuals provide useful sources of information on the tax treatment of website creation costs. The tax treatment of expenditure on developing a website is dependent on the nature of the expenditure.

A guide to VAT for tech start-ups

Value added tax (VAT) is a sales tax designed to be borne by the end consumer. It can be complex and affects most organisations across the European Union. Although sometimes a cause of compliance headaches for tech companies, being a VAT-registered business can bring its advantages.

VAT blow for cultural charities and public bodies

The European Court of Justice (ECJ) has finally crushed hopes that more public bodies and charities engaged in cultural activities could claim VAT exemption on their admission charges. Its recent judgment in the VAT case of the British Film Institute (BFI), released in February, draws a line under an argument that has been running for the last four years.

Hacking – get to know your enemy

As the world moves closer to a unified digital solution for industries such as banking, social media and news, more and more personal and private data is being generated. In fact, 90% of the world’s data has been created within the last two years. Every new day produces 2.5 quintillion bytes of data – equivalent to 10 million blue-rays.  The vast majority of this data is meaningless, but hidden within it lie highly confidential files containing trade secrets and financial records.
 

Paying royalties to non-residents

Currently, UK companies paying royalties to persons overseas have to deduct tax at 20% if the royalties relate to a patent or are ‘pure income profit’ (rather than part of the profits of a trade). Under provisions included in the Finance Bill currently before Parliament, from 28 June 2016 the obligation to deduct tax is extended to any royalty, or other payment for the use of (or for the right to use) intellectual property.

Will your clothes soon be smarter than you?

Textiles have long been important for protecting human life, but new technology is pushing the boundaries of what our clothes can do for us. From enhancing our internet and electronics connectivity to monitoring our vital signs, groundbreaking ‘smart’ textiles have the potential to change the way we live and improve our quality of life. And with R&D tax credits, the cost of innovation may not be as much as you think.

The Budget 2016 – video summary

A sugar-coated Budget for the next generation

In the uncertain global economic environment, the Chancellor’s deficit-reduction goals have become more challenging. But he still managed to strike an up-beat tone when delivering “a Budget that puts the next generation first”.

Cyber security breaches and costs

The World Ecomomic Forum’s global risk report, released in January 2016, kept data theft or fraud as being one of the 10 most likely risks to crystallise. To understand what this might mean for you, pair the WEF report with the 2015 Information Security Breaches Survey conducted by BIS.

An Autumn Statement for “rebuilding Britain”

Five years since delivering his first spending review, George Osborne spent over an hour delivering his 2015 Autumn Statement. He repeatedly stated the Government’s intent to build public services, infrastructure, national defences and strong public finances.

The UK and Germany propose ending the Patent Box

The Patent Box was introduced from 1 April 2013 and is a regime that allows companies to benefit from a reduced rate of corporation tax on profits attributable to patented processes. A limited number of other intellectual property rights that are very similar in their effect to patents are included in the Patent Box, but not trademarks and copyrights. Unregistered intellectual property is not eligible for inclusion in the regime.

New ‘diverted profits’ tax

In the Autumn Statement the Chancellor announced the introduction of a new 25% tax on profits generated by multinational companies from economic activity carried out in the UK which are artificially moved outside of the UK in order to avoid UK tax.

The Autumn Statement – what can we expect?

The Chancellor of the Exchequer will deliver his Autumn Statement on Wednesday 3 December. This will provide an update on the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility, which will be published the same day.

The Budget 2014 – summary

In a speech full of sound bites, the Chancellor’s 2014 Budget repeated past themes – the need to build a resilient economy and for Britain to live within its means. But his dominant message was new: this was a Budget for “the makers, the doers and the savers”.

Going global? Mind your tax

Globalised or globalising technology and media companies must grapple with the intricacies of both UK and international tax law. As part of our continuing tech and media globalisation series we will be releasing a range of tax updates covering: