If you’re an IT business, how you complete your taxes could be more complex than you think. The different ways in which IT businesses can be structured – from operations to products – can give rise to tax implications you may not have even known about before.
In this four-part series, Chris Cairns from Alliotts Chartered Accountants and Trevor Shaw from Dains Accountants use their combined 50 years’ experience advising businesses on their tax strategy to explain how you can tackle some of the major problems faced by IT businesses.
Part one: tax reliefs and incentives for IT and tech businesses provides important information about the funding available at different points in a business’s lifecycle to give it a boost to grow to the next stage. This guide covers tax relief that’s directly available to IT businesses and the relief available for investors, which can make your business more attractive to them.
Part two: how to recognise revenue on software and other products and services highlights the difficulties of revenue recognition in your tax documentation. It looks at how to unbundle your profits and separate out the revenue on your products, services, tailoring and day-to-day work in order to accurately register profits at the correct time and for the right amount. It also offers key insights into evidence you can use to recognise your profits correctly.
Part three: IT professionals: How tax is applied to your cloud services looks at how your business operates through the cloud and how that affects the tax you have to pay. It focuses on the different ways your business could deliver to customers through the cloud, including important aspects such as the location of your server, where your customers are based and the services you offer in addition to the cloud.
Part four: four problems IT businesses face when setting up abroad explains the various pitfalls that can plague a business when expanding into new territories. It covers overseas tax distinctions that could apply to your business, how to avoid transfer pricing when registering your profits, funding the overseas parts of your business while keeping tax in mind, and the benefits of setting out a formal trade agreement.
So if you’re an IT business struggling with tax documentation or you’re simply interested in building on your tax knowledge for the IT industry, these guides will help you keep your tax strategy on track whether you’re UK based or setting up abroad. Get started with Part one: tax reliefs and incentives for IT and tech businesses.