News: Rotherham firms see inside the Patent Box
Enterprising Rotherham firms have been taking advice on how they can develop innovative new products and save on their tax bills at the same time.
A recent seminar at RiDO's Moorgate Crofts Business Centre focused on The Patent Box - the Government's new regime of tax relief on company profits from patented products, which is set to be introduced in April 2013. Companies that choose to develop products with a patent will be eligible for tax relief of up to 60 per cent in the tax year 2013-2014, increasing up to 100% relief in four years' time.
The seminar was a collaboration between Atkinson & Co patent attorneys, based in Rotherham, Hart Shaw Chartered Accountants of Sheffield, RiDO's ERDF-funded Growth and Prosperity in Rotherham (Soft Landing Zone) and UKTI (UK Trade & Investment).
Steve Vickers, Tax Partner at Hart Shaw Chartered Accountants and Business Advisers, explained how HMRC is introducing a reduced level of corporation tax – down to 10% – on profits attributed to patents and other types of intellectual property. As the Patent Box applies to worldwide income from existing and new patents, it opens up the opportunity for local businesses to export into overseas markets.
Steve discussed how SME companies can take advantage of this new tax relief on patents. This includes navigating the complexities of the Patent Box and how to calculate the tax saving.
Steve Vickers said: "The Patent Box is a great incentive for businesses to invest in developing patents on a national and international basis, whilst recouping the corporation tax benefits. It is good news for businesses locally looking to work on more of an international level."
Ralph Atkinson, European Patent Attorney at Atkinson & Company Patent in Rotherham, explained the legal considerations regarding patents and how it will have positive commercial implications.
Ralph Atkinson said: "It is a great time to take advantage of the Patent Box, but essential for companies to make sure they have the proper legal protection in place from the outset, when targeting both domestic and international markets."
Amanda Parris, Business Development Manager for RiDO, added: "This was a very well attended seminar and was a chance for delegates to ask questions directly of experts in their field. There are some really exciting opportunities for companies within our local area to take advantage of the Patent Box, both in the UK and overseas and there is all the support available to help them do this."
Nathasha Leach, International Trade Adviser at UKTI, discussed the support for companies that are looking to export, which is available through UKTI. Martyn Benson, the business co-ordinator from RiDO, explained how the Growth and Prosperity in Rotherham – Soft Landing Zone – works, offering support to Rotherham companies with accessing international markets and helping foreign inward investors who choose to locate to RiDO's business centres.
RiDO website
Hart Shaw website
Atkinson & Co. website
Images: RiDO
A recent seminar at RiDO's Moorgate Crofts Business Centre focused on The Patent Box - the Government's new regime of tax relief on company profits from patented products, which is set to be introduced in April 2013. Companies that choose to develop products with a patent will be eligible for tax relief of up to 60 per cent in the tax year 2013-2014, increasing up to 100% relief in four years' time.
The seminar was a collaboration between Atkinson & Co patent attorneys, based in Rotherham, Hart Shaw Chartered Accountants of Sheffield, RiDO's ERDF-funded Growth and Prosperity in Rotherham (Soft Landing Zone) and UKTI (UK Trade & Investment).
Steve Vickers, Tax Partner at Hart Shaw Chartered Accountants and Business Advisers, explained how HMRC is introducing a reduced level of corporation tax – down to 10% – on profits attributed to patents and other types of intellectual property. As the Patent Box applies to worldwide income from existing and new patents, it opens up the opportunity for local businesses to export into overseas markets.
Steve discussed how SME companies can take advantage of this new tax relief on patents. This includes navigating the complexities of the Patent Box and how to calculate the tax saving.
Steve Vickers said: "The Patent Box is a great incentive for businesses to invest in developing patents on a national and international basis, whilst recouping the corporation tax benefits. It is good news for businesses locally looking to work on more of an international level."
Ralph Atkinson, European Patent Attorney at Atkinson & Company Patent in Rotherham, explained the legal considerations regarding patents and how it will have positive commercial implications.
Ralph Atkinson said: "It is a great time to take advantage of the Patent Box, but essential for companies to make sure they have the proper legal protection in place from the outset, when targeting both domestic and international markets."
Amanda Parris, Business Development Manager for RiDO, added: "This was a very well attended seminar and was a chance for delegates to ask questions directly of experts in their field. There are some really exciting opportunities for companies within our local area to take advantage of the Patent Box, both in the UK and overseas and there is all the support available to help them do this."
Nathasha Leach, International Trade Adviser at UKTI, discussed the support for companies that are looking to export, which is available through UKTI. Martyn Benson, the business co-ordinator from RiDO, explained how the Growth and Prosperity in Rotherham – Soft Landing Zone – works, offering support to Rotherham companies with accessing international markets and helping foreign inward investors who choose to locate to RiDO's business centres.
RiDO website
Hart Shaw website
Atkinson & Co. website
Images: RiDO
1 comments:
Patent Box is excellent news for the UK. Perhaps this new tax will encourage execs to look harder at patenting, after all if they license a third party at 10% it looks like the third party will only pay 10% on any profits relating to the patented product, so in essence the licence will cost the licensee nothing.This tax will also apply to foreign patents where the capital flows to the UK. Patenting is international and today both the searching and filing can all be done online.The high fees attorneys charge may be worth paying if you are a corporate and have to employ somebody to do the patenting anyway, but if you are an individual, substantial attorney fees running into thousands, create a very significant barrier. A complete UK patent actually only costs £230 in total, the UK IPO is amazing and fantastically helpful and it is now entirely possible to patent internationally yourself from your laptop, if you know how to go about it. The difficult bit is having something to patent and understanding what is and isn’t patentable. A great cheap Amazon ebook, which tells you how to go about patenting internationally, step-by-step, is DIY Patent Online. It lists all the fees and has links to all the sites you need plus you can read some of it free on Amazon. They also have a web site and unlike most patent site, which are a cure for insomnia, they aren’t trying to sell you any services. Many spout off about patents knowing little about the subject in reality. The only patent that is really worth it’s salt is a Utility Patent – they even call them utility patents in the States but in the UK they are just called Patents. These must have an 'Inventive Step' and must not be ‘obvious to somebody skilled in the art'. These are not to be confused with US Design Patents (UK Design Registration) or Australian Innovation Patents. which are easy to get and get around. Patenting is challenging when you don't know how but like everything else, once you have the hang of it, it's quite straightforward. Most businessmen are busy building empires with all the costs involved, these are tangible, you can see them. However my moniker is ‘If you can touch it, don’t touch it’. Intellectual Property is the only thing worth having, owning the IP makes you the master, the rest is just overhead, which is an idea well worth disseminating to your clients.
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