Budget 2011 – What it means for Silicon Roundabout?
23 Mar 11
Budget 2011 – What it means for Silicon Roundabout?
SME’s and large businesses in the technology sector could benefit from the 2011 Budget as the Chancellor seeks to further growth in the UK economy.
Research and Development (R&D) Tax Credit
R&D tax credit will rise to 200% starting April 2011, followed by 225% in 2012 in an effort to help encourage the development of new services that will generate future revenues.
R&D credit is a Corporation Tax relief that may reduce a company’s tax liability by more than the actual expenditure on allowable R&D costs such as employee costs, materials and utilities. Small or medium sized companies may be able to receive a tax credit instead, by way of a cash sum paid by HM Revenue & Customs (HMRC).
Corporation Tax
Corporation tax is to be reduced by 2% from April 2011, reducing to 23% over the next three years.
If you are operating as a sole trader, consider incorporating to a limited company. Trading wholly or partially through a company could save significant amounts of tax and national insurance.
Enterprise Zones
The Chancellor has announced a total of 21 enterprise zones. Businesses will get up to 100% discount on rates, new superfast broadband and the potential to use enhanced capital allowances.
The first 10 zones will be in: Birmingham and Solihull, Leeds, Liverpool, Greater Manchester, The Tees Valley, Tyneside, The Bristol area, The Black Country, Derbyshire and Nottinghamshire and Sheffield. A further 10 locations will be announced this summer.
Jeffreys Henry LLP
Jeffreys Henry LLP is a leading firm of Chartered Accountants in London and Tax Advisers. Based just off Old Street/Silicon Roundabout, we specialise in working with entrepreneurial technology businesses including software developers, hardware manufacturers, gaming, digital/online media and telecoms.
For further advice or information, please contact Jeffreys Henry LLP on 0207 309 2222 or email enquiries@jeffreyshenry.com.
The information contained in this article is for general information only; always seek professional advice before taking any action. Whilst every care has been taken in preparation of this article, it may contain errors or omissions and cannot be responsible for any loss incurred as a result of omission, inaccuracy, misjudgement or misunderstanding.