Monthly Archives: October 2012

The Patent Box

A new 10% tax rate for companies who receive income from the exploitation of qualifying patent rights is due to be introduced from April 2013.  This new regime, known as the Patent Box regime will apply to companies who have developed a patented product or who have the exclusive licence to sell such a product.

This reduced rate of tax is being phased in over 5 years and will be delivered through an additional deduction in the corporation tax computation.  Companies must opt into the regime for it to apply.

Income that will fall into the patent box regime will include:

  • worldwide sales of the patented item
  • worldwide sales of a product incorporating the patented item
  • worldwide licence fees and royalties from the qualifying patents

As can be seen from the types of income that potentially qualify, the new regime appears to be extremely wide ranging and could have huge benefits for many companies, particularly if the company has also benefitted from research and development tax credits on the development of the patented item.

Some work will be required in identifying and monitoring the qualifying income and there are specific rules for apportioning profits and specific expenses.

In order to benefit as soon as possible from this low tax rate, we recommend getting systems in place now to identify any qualifying products and income.

Consideration might also be given to whether to apply for patents on products where such applications are possible but have not necessarily been considered worthwhile in the past.

Visit our helpsheet section for more information on both R & D tax credits and the Patent Box

To find out whether you can benefit from the new patent box regime or for advice on preparing a claim, please contact Jane Parry on 01254 679131 or email jane.parry@pmm.co.uk

 

Are you late with any HMRC payments?

If you are late with any HMRC payments, you may receive a letter, call or text from an agency asking you to pay your outstanding arrears. The legitimate, HMRC-approved agencies at the time of print are:

Advantis Credit Ltd
Apex Credit Management Ltd
Bluestone Credit Management Ltd (formerly named Close Credit Management Ltd)
Commercial Collection Services Ltd
Commercial Credit Services Group
Credit Solutions Ltd
Direct Legal and Collections
drydensfairfax solicitors
Fredrickson International Ltd
iQor Recovery Services Ltd
Rossendales Ltd

There are some companies who may try to deceive you, by copying HMRC branding, to fraudulently obtain bank details or credit card details. If you are contacted by anyone, other than the above named collection agencies, you should not respond but you should report the matter to your Tax Office.

You can confirm with HMRC directly that the contact you have received is genuine by calling their helpline on Tel 0845 915 5348.

On a similar note – HMRC does not issue emails asking for money or to claim a repayment or legacy. If you receive such an email then do not open it – only forward the email to phishing@hmrc.gov.uk so that HMRC can investigate.

For more information, contact our tax team on 01254 679131 who are happy to help.

99% of Wealth Management Clients are Happy to Recommend our Services to a Friend!

During 2012 we commissioned a short satisfaction survey to our wealth management clients. We were delighted by the response from the survey and now that the results are in, we are encouraged that our clients think we are on the right track!!

99% of wealth management clients rate our service very highly and 91% believe we provide value for money.

Overall, our clients are very happy with their adviser and the level of communications received. 100% of clients agree that our team are accessible, approachable and friendly and 91% believe that we provide timely and easy-to-understand communications. 94% of clients feel valued by both their adviser and the PM+M Wealth Management team.

Clients were also asked how they felt about the work we undertook for them. 97% believed that we listened to them and worked with them to achieve their goals, whilst providing clear explanations of the guidance given.

When asked if they would recommend PM+M Wealth Management to their friends, an impressive 99% said yes!

Tony Brierley, Managing Director of PM+M Wealth Management said, “The survey results are extremely encouraging and show that the majority of our clients feel our team are providing an excellent service.  However we realise that it takes constant effort to achieve and maintain this standard and we aim to take onboard all of the very constructive comments received to provide an even better service in the future.”

We asked clients how they might sum up our service in one short sentence – here are a selection of the replies:

“PM+M offer an an efficient and effective service with valuable advice.”

“Trustworthy professional advice.”

“Our family has been a client of PM+M for 4 generations so you must be doing ok!”

“Friendly and informative, I feel my investments are in safe hands.”

“Thoroughly professional, knowledgeable and up-to-date with a genuine care for their clients. Thank you”

Practice Excellence Awards shortlist success

New Partner Signals Manchester Expansion for PM+M

We are delighted to announce that from 8th October 2012 David Gorton joined PM+M as a Partner.

An Oxford graduate, fellow chartered accountant and chartered tax adviser, David, 42, spent 13 years with PricewaterhouseCoopers in corporate transactions and audit, before working in his family accountancy firm for nine years.

David works with a wide range of corporate and non-corporate clients and specialises in corporate transactions, audit and tax as well as business advice. He enjoys working with his clients to understand their businesses and helping to solve financial and business problems.

The whole PM+M team warmly welcomes David, and all his existing clients, into the PM+M family. We think he will fit our team perfectly, bringing some fresh ideas to develop our firm.