Utilise Essential Tax Relief Schemes to Boost Business Expansion, says Misha Patel, Head of Tax at Dragon Argent
At Dragon Argent, our tax advisors are here to help your business prosper and grow. We proactively advise clients on the tax implications of starting and scaling ambitious businesses. We not only deal with compliance related tax obligations, such as VAT and Corporation Tax, but help clients navigate HMRCs landscape of incentives including R&D, (S)EIS and EMI schemes.
R&D (research and development) tax credits, which are available to SMEs engaged in qualifying R&D activities, reducing their corporation tax liability, or providing cash payments to promote innovation.
Companies of all sizes can claim R&D relief. Eligible R&D must be scientific or tech-focused, aiming to advance knowledge or capability. It should bring significant improvements via innovation, and not involve routine work. R&D Tax Relief Claims
We’ll help you reclaim qualifying costs spent on research and development, even if you have made a loss and we do it at a fraction of the cost quoted by specialist R&D consultancies, ensuring you can reinvest the credits into the growth of your business.
There is also SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) both offer tax incentives for individuals investing in eligible SMEs – SEIS providing 50% income tax relief; and EIS offering 30% income tax relief.
The S/EIS is designed to help early-stage startups raise capital. Founders can offer SEIS-qualified shares to investors, making it easier to attract funding during the critical early stages of a business.
As your business grows, you’ll want to incentivise key employees to drive growth and deliver commercial success over the long term. We’ll partner with you to manage the process, valuation, and roll-out of an EMI scheme – the most tax efficient method for incentivising staff.
The EMI scheme (Enterprise Management Incentives) is an employee share option scheme that assists SMEs in retaining key employees by granting them opportunities to acquire company shares.
EMI allows smaller ventures to grant employees the option to buy shares in the company at a predetermined price. Employees can potentially benefit from favourable tax treatment when they exercise these options. This motivates and retains staff.
We typically do the above services to our clients who have undertaken transactions such as an investment rounds, corporate restructures, disposals and exits. Engage an advisor today to discuss.