Guide to understanding Research & Development Tax Credit for large companies

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The HM Revenue & Customs or HMRC has made it easy for a large company to avail tax relief from their research and development expenditure.

By applying for a tax credit relief, you can improve your business cashflow, reduce your tax rate and lessen your income tax expenses. This might just be the perfect solution for your business.

Things that can help you qualify for an R&D tax relief

Not a lot of business owners know that they can apply for R&D tax relief. Despite the efforts of the UK government to encourage technical innovation in businesses, only 19% percent classify their business as innovation active and file for an R&D tax incentive.

If your business belongs to the technology and science industry, you should try applying for a R&D tax credit privilege. To start, you need to ensure that your business meets the following criteria:

Developing products improved by technology

If you manufacture products and you constantly innovate your production process by conducting research and product testings, you may qualify for an R&D tax relief. It doesn’t matter if you succeed or fail in your product improvement. You can still claim a tax credit by submitting the necessary paperwork.You

Covid-19 Pandemic Will Not Be The Last: WHO Chief

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The coronavirus crisis will not be the last pandemic, and attempts to improve human health are “doomed” without tackling climate change and animal welfare, the World Health Organization’s chief said.

Tedros Adhanom Ghebreyesus also condemned the “dangerously short-sighted” cycle of throwing cash at outbreaks but doing nothing to prepare for the next one, in a video message marking Sunday’s first International Day of Epidemic Preparedness.

The WHO director-general said it was time to learn the lessons from the Covid-19 pandemic.

“For too long, the world has operated on a cycle of panic and neglect,” he said.

“We throw money at an outbreak, and when it’s over, we forget about it and do nothing to prevent the next one. This is dangerously short-sighted, and frankly difficult to understand.”

The Global Preparedness Monitoring Board’s September 2019 first annual report on world readiness for health emergencies — published a few months before the novel coronavirus broke out — said the planet was woefully unprepared for potentially devastating pandemics.

“History tells us that this will not be the last pandemic, and epidemics are a fact of life,” said Tedros.

“The pandemic has highlighted the intimate links between the health of humans, animals and planet,”

Your Christmas party could result in a tax demand for your business

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Employers planning a staff Christmas party risk tax demands because of increasing entertaining during the rest of the year.

The official annual limit for staff entertaining, set by HMRC, is £150 for each employee.

“Unfortunately, the growing popularity of, for example, ‘pizza nights’ and summer drinks means that the limit is often now reached long before Christmas, and that is catching out unwary employers,” warns Chris Smith, Head of Personal Tax Compliance at accountancy firm BKL.

“The implications are considerable. If the Christmas party does breach the annual limit then the whole cost of that event is taxable on employees as a benefit in kind. The employer also has to pay national insurance at 13.8%.”

The key points for an employer to consider before they dig into their pockets are:

  • The “per head” figure is based on all attendees. If family members are invited and the figure exceeds £150, employees will be taxable on the amount allocated to them and their family members.
  • For example, 10 employees each bring a guest to the Christmas party which costs £3,500. Each employee would be taxable on £350. The company would also have Class 1A National Insurance (NI) to pay on the £3,500.

World Readies For Lockdown Christmas

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Coronavirus misery hung over Christmas preparations worldwide on Thursday, with countless millions forced to cancel plans or limit festivities under fresh virus lockdowns.

After a grinding pandemic year that has seen more than 1.7 million people die from Covid-19, a slew of new outbreaks are a stark reminder that despite emergency vaccine rollouts, life is unlikely to return to normal quickly.





Donald Trump and his wife Melania left Washington to spend Christmas in Florida, after his shock rejection of a massive coronavirus relief package passed by Congress
 AFP / SAUL LOEB

Pope Francis, spiritual leader of 1.3 billion Catholics across the globe, celebrated Christmas Eve mass in St Peter’s Basilica before fewer than 200 masked faithful, mostly employees of the tiny state of Vatican City.

The mass, traditionally held at midnight, had been moved forward by two hours to 7:30 pm (1830 GMT) to meet Italy’s curfew rules.

Before the pandemic hit, several thousand believers and tourists had obtained precious tickets to attend the papal mass.



Thousands of hauliers are stuck in the UK, cut off by travel restrictions brought in because of a new coronavirus variant discovered there


Thousands of hauliers are stuck in the UK, cut off by travel restrictions brought in because of a new coronavirus variant discovered there
 AFP / JEAN-FRANCOIS MONIER

On Thursday evening, St Peter’s Square, usually

Financial New Year’s Resolutions for small business owners

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The first thing on any business’ New Year’s to do list is getting their finances organised for the upcoming year.

Whether it’s preparing to expand your workforce or scale your business, every company wants to make this year their best.

Tax expert and Director of Online Tax Rebates, Tony Mills, provides actionable advice to help you manage your business’ finances better in 2019.

Stay on top of cash flow

Managing cash flow is one of the basic principles of doing business but it’s actually one of the biggest cause offailing SMEs.

It may sound obvious but keeping an eye on your finances means you can spot any potential cash flow issues before they arise and figure out how to manage them. Be clear with clients on payment terms – it’ll help you forecast cash flow, so you’re never left short. Also, consider adding late payment charges as an extra level of insurance for your business.

Managing books doesn’t have to be the arduous manual task it used to be. There are plenty of online resources available to help you plan your finances. Accounting software gives you a wider view of your financial future to make planning for the

Spain Passes Budget In Boost For Minority Government

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Spain’s Senate approved Prime Minister Pedro Sanchez’s budget for 2021 on Tuesday, boosting his minority Socialist-led government after years of political instability.

The spending plan, which channels billions of euros in European Union pandemic recovery funds into the economy, was approved by the lower house on December 3 before receiving the Senate’s backing.

Its passage increases the chances that Sanchez will hold on to power until the next general election set for 2023.

It became the first budget to be approved since 2018.

The rise of new parties such as far-left Podemos and market-friendly Ciudadanos has fractured parliament, making it difficult to pass legislation.

This has led to a cycle of political instability that has taken Spain, the euro zone’s fourth largest economy, to four elections between 2015 and 2019.

“This is a very, very important stage because it allows Pedro Sanchez to gain time and stability,” said Oriol Bartomeus, a political scientist at the Autonomous University of Barcelona.

Sanchez came to power in June 2018 but was forced to call fresh elections early last year after Catalan separatist parties voted down his draft budget.

The budget vote came on the heels of the start of a high-profile trial of

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