Small firms urged not to miss out on Patent Box tax breaks

Many small businesses could risk missing out on lucrative tax breaks from the forthcoming Patent Box system, experts have warned.Under the scheme, which comes into effect in April 2013, businesses that have generated profits from Intellectual Property can benefit from a tax cut which means they pay just 10 per cent tax on that money.Accountancy firm KPMG has expressed concern that many smaller firms could fail to take advantage of the tax break. KPMG has said it has noticed that larger businesses are taking advice on the Patent Box system but fewer small firms are coming forward to seek information.The accountancy firm believes the reason for this may be that small businesses are concerned that the tax break claims process will be complicated and that professional advice in this area will be too expensive.Jonathan Bridges, an associate partner at KPMG, explains, "Small and medium-sized businesses are sometimes concerned that the costs and hassle of claiming a tax relief might outweigh the financial benefits."However, KPMG has noted that an SME that has made £100,000 profits from Intellectual Property could save as much as £12,000 through the scheme.

http://www.50percenttax.co.uk/index/2012/7/24/small-firms-urged-not-to-miss-out-on-patent-box-tax-breaks.html