Nearly 300 businesses in the North East missing out on invaluable tax relief, says leading tax expert

Jonathan Scott, tax partner at leading business advisory firm Haines Watts is calling on innovative businesses to consider patent box tax relief.

Recent statistics have revealed that more than 280 regional businesses hold, or are within the process of applying for a patent, only 35 businesses have utilised the relief.

The statistics come as the firm have launched a new specialist arm of their tax incentives and reliefs team to support innovative businesses with their Patent Box claims.

The team will be led by Jonathan alongside associate partner Jessica Brook and assistant manager Bradley Barraclough.

Together, they have more than 25 years’ of industry experience and have saved businesses across the UK millions of pounds worth Patent Box relief to date.

Patent Box was introduced by the Government 10 years ago, enabling businesses who generate an income from their patents to claim an effective corporation tax rate of ten per cent on eligible profits.

The North East continue to lag behind the rest of the UK, though, constituting only one per cent of the amount claimed.

Speaking on Patent Box, Jonathan said: “Whether it’s lack of awareness of the relief, or the misconception that UK patents cost hundreds of thousands of pounds, Patent Box continues to be a missed opportunity for many.

“Especially when considering the patent and trade mark rates have been rising significantly over the last four years.

“Innovation will be key for business owners when it comes to being able adapt, pivot and thrive during these economically challenging times.

“If you are coming up with new ideas, products or services, ensuring your intellectual property is protected so you can retain and grow market share is vital.

“Patents and trademarks can offer this protection, and the reality is that holding a UK-only patent can cost around £6000.

In the long run, the rewards of the investment can be huge, especially when taking a hybrid approach towards Patent Box and R&D tax relief.

“And with corporation tax rates rising to 25 per cent as of April 1, Patent Box has never been more valuable, as companies will be paying more tax on their profits, making the value of the tax break even bigger.

“As a team, we’re looking forward to supporting business owners across the North of England and wider UK with their Patent Box claims, to help them make the most of their patents during these challenging times.”

Haines Watts is a leading advisor to owner-managed businesses in the UK. As a Top 15 firm, it delivers a wide range of services and solutions that enable aspirational business owners to achieve their goals.

More information on Haines Watts can be found on their website: https://www.haineswatts.co.uk