Thinking Outside the Patent Box... Trick or Treat?
If YesTax told you that you could be paying 10% corporation tax instead of the 19% you are currently paying, you’d probably think this was a trick.
Introduced in 2013, Patent Box is one of several tax treats served up by the UK Treasury which gives businesses an incentive to patent their technology and pay a reduced rate of corporation tax. It is frightening how many SMEs are missing out on this valuable tax relief.
In the tax year 2016/17, only 1,025 businesses took advantage of the Patent Box, saving a total of £942 million. So why is this the case?
Awareness of this scheme is extremely low simply because many businesses don’t believe their products qualify for patents. However, the technical hurdle to obtain a patent is much lower than many would expect. If you have a profitable, physical product and you can demonstrate that an element of the product is new or novel, involves some form of inventive step, and is capable of industrial application, then you could well be eligible for a patent and the resultant 10% tax rate.
It’s surprising what products or even parts of a product can be patented.
So what are the next steps?
- Due Diligence – Our patent attorney partners are delighted to offer you a complimentary health check to discuss whether you are eligible for any patents on your products.
- Patent Application – We offer a transparent fixed fee to apply for a patent and if we can demonstrate there is a ‘green’ element to your product, it may be possible to have a 8patent granted in as little as 6 months.
- Once the patent is granted, we will produce a detailed calculation of the tax savings and a corresponding technical report to secure your 10% tax rate.
Now you can see it’s not a trick! Don’t be one of the many thousands of SMEs that are missing out on this valuable government treat. Email us now at email@example.com to receive your complimentary health check.