Technology Sector

Although this is not an area unique to the Tech Sector, stock/share options are common place within it. Over the years, we have dealt with every aspect of US and UK option schemes, and are truly expert in this area.

Through our payroll services we can account for tax on US option schemes, on ESPP and RSU’s and advise how to reflect those transactions through payroll, the intercompany account and in the financial statements.

We can advise, and convert your US option scheme to a tax efficient UK option scheme; perhaps an EMI or CSOP scheme.

We can agree your share valuation with HM Revenue and Customs, to ensure that there are no complications later on.

We can get agreement with HM Revenue and Customs to an NIC election, so that the company can pass on the tax that it would otherwise have to pay, on any gains made by the employee on exercise of options.

We can take care of the management and filing of all annual compliance reports.

We take care of everything.

Amongst the G20 this is an increasingly sensitive area.

By providing insight and developing and implementing internal performance processes and transfer pricing models in compliance with international tax law, we can assist you in developing economically supportable transfer pricing models and take advantage of forward-looking tax planning.

In addition, we can draw up intercompany agreements for you.

There have been new and revised standards in this area, particularly important for technology companies and businesses in subsectors that have specialized guidance or industry practices, such as software and semiconductors. We can offer guidance to ensure you are compliant with both UK and US GAAP.

If your UK staff engage in Research and Development then it is likely that you will be able to deduct up to 186% of their costs in your UK corporation tax calculations, thereby directly reducing your profits liable to corporation tax.
In some cases this may mean that these increased deductions create a loss, and in those cases it may be, that even if you have not paid corporation tax in the past, you can get cash equivalent to tax on those losses from the UK tax authority.

We have made many successful claims over the years, and received £m’s for our clients.

Because of the sector we serve, we see our clients grow to the point of being acquired or listed, whether here or in the US.

We have taken a very hands-on approach to work with clients and their bankers through M&A processes to ensure that full financial support is given at times of intense activity to support clients at a time of stress to achieve a successful IPO.

We enjoy sitting on boards of companies that have the backing of some of Europe’s leading venture capitalists, including; Index Ventures, Prime Technology Ventures, Northstar Ventures etc

Consequently, we understand the needs of investors, and support clients to meet them.

We routinely support funding rounds with excellent management reports, financial forecasts, monitoring of financial covenants, financial reporting, and audit support.

Since 1995, we have supported exceptional entrepreneurs in more than a dozen countries who are using technology to reshape the world around us.

Consequently, we have worked with a number of counterparts in those geographies, and have cultivated relationships with the good ones, to give us an eco-system of like-minded professionals to draw upon.

So, even if we cannot meet your overseas needs ourselves, we will be able to find and work with someone who can.