What are Patent Box incentives?
Patent Box offers UK companies a reduced Corporation Tax rate on profits from patented inventions.
The Patent Box scheme is intended to incentivise research and development & innovation, and the retention and commercialisation of intellectual property (IP) in the UK, by offering a significantly reduced rate of Corporation Tax (10%) on profits from patented inventions.
How do I claim for patent box incentives?
As with R&D incentives, the Patent Box scheme is elected into through Corporation Tax Self Assessment.
It requires detailed evidence of your relevant IP income and how you have calculated these streams of income to cost your IP profits. For businesses with IP, these incentives present a significant tax saving, but interpreting and applying the rules correctly can be complex.
We believe that delivering detailed and defensible Patent Box claims starts with a broad understanding of your business, income streams, and revenue forecasting. This understanding alongside tax expertise combined with a client-led approach provides the comfort that the claim is in the best hands.
The Process
1. Kick-Off
From day one, your engagement will begin with a dedicated client manager guiding you through every step. We will invest the time in learning how your business works and your preferred communication styles, so our approach fits naturally into your processes from the outset.
2. Identify relevant patent income
Our tax professionals will work with you to identify patent-related income that can be included in your claim. We will look at your patent dates (application and grant), ensuring you time the election into the Patent Box scheme strategically to maximise your benefit.
3. Calculate the Patent Box benefit
To give you confidence in your claim, we will provide you with robust, HMRC-compliant documentation ready for submission. Our tax professionals handle the complex Patent Box streaming methodology, taking care of the detailed legislative calculations and clearly identifying the financial benefit to your business.
4. Ongoing Support
We take a proactive, long-term approach to the Patent Box scheme, helping you plan with greater clarity around future benefits. Our support doesn’t stop at submission, we’re by your side to manage any HMRC compliance checks that may arise.
Want to discuss your options?
- How long will it take to receive the money?
- Every single case is unique, however if you are committed to preparing the claim quickly, it can be completed and sent to HMRC in as little as 1-2 weeks. Once the tax return has been submitted, the reduced corporation tax rate will be processed.
- How much of my time will it take?
- Again each case is unique, however our process is designed to ensure that we minimise your time where possible. In most cases we can look to limit you and your teams time commitment to a handful of hours.
- How do you structure your fees?
- There’s no one-size-fits-all approach to Patent Box claims, every business has different income streams and forecasting considerations, and our fees reflect the level of support you need.
What you can always expect are fees that are flexible, fair, and transparent. More importantly, you’ll receive value for money through a carefully prepared, defendable claim built by specialists who understand both tax and your business.
For a tailored estimate, simply book a chat with our team, we’ll be happy to provide a clear proposal. - Can HMRC ask further questions?
- Yes, HMRC has the right to ask further questions about any deductions within your corporation tax return, such as Patent Box.
HMRC expect you to provide robust evidence as to how the Patent Box scheme applies to you. You must be prepared to provide all calculations and assessments to demonstrate compliance.