March 19, 2015

The Budget 2015

The Pre-election budget was released today, and we’ve made a note of how George’s plans will affect startups.

 

Capital Gains Tax (CGT) and Entrepreneurs’ Relief (ER)

The Government tells us they are committed to supporting Entrepreneurs and seem determined to stamp out what they perceive is avoidance. So if you have a set-up with non trading companies in your group or have joint ventures with other people, then extra care is needed to ensure that you can still qualify for relief. This is a subtle and important change.

 

“Startups – Sort your R&D tax credits through ihorizon!”

Well – that’s not quite what he said, however, the government have been looking to improve access to R&D tax credits for smaller companies and as such, will introduce advanced assurance lasting 3 years for smaller businesses making a first claim from Autumn 2015. This means if your accountant offers a fixed fee to do your R&D, like we do at ihorizon, you’ll be far better off than if they charge a % over a locked in time period.

 

SEIS and EIS

If you’ve raised funds under SEIS, you no longer need to spend 70% of it before being able to raise more funds under EIS. **Very good news for 2-part closes**

Just to note here, this has been suggested but waiting for HMRC to confirm in the Finance Act as its subject to state aid rules.

 

Death of the tax return

If your workforce comprises of freelancers – here’s some good news for them. The annual paper tax return will be replaced with a digital tax system to help reduce the January scramble – “Tax doesn’t have to be taxing” so the Chancellor says…

#thetaxreturnisdead #longlivethetaxreturn

 

Two-kitchens-Ed and the Internet-of-Things

There will be more help for the development of the ‘Internet-of-Things’ industry. With £40m in funding going towards incubators, research hubs and demo programmes.

 

Quote of the day – “… should someone have two kitchens, they’ll be able to control both fridges from the same smartphone” If only it was that simple, and if only my milk wouldn’t go bad.

 

Google Tax

Companies that move their profits overseas to avoid tax will be subject to a “diverted profits tax” from April. Companies with an annual turnover of £10m will have to tell the Taxman if their company structure will make them liable.

 

Other key points

Great News! For the third year in a row, beer is getting cheaper! We see what you’re doing there George, right before the election…

 

 

If you have any questions about what the budget means for your tech startup, feel free to pop in, or drop us an email.

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