Sundown Solutions

Many companies miss out on tax savings because they simply don’t know that rebates are available.  Thanks to advice from Haworths’ tax team, Sundown Solutions in Accrington was able to save £13,000 on its annual tax bill and will recoup £thousands in future tax rebates too.

Sundown Solutions used to specialise in SharePoint software projects but, by investing in changing its business model to focus on cloud based systems, it increased its profitability from 29 per cent to 84 per cent profitability within just nine months!

That growth increased the company’s tax liability but, thanks to advice from the Haworths team, it was able to save money on its corporation tax through an HMRC Research & Development (R&D) Tax Relief scheme.

Haworths’ Tax team advised Sundown Solutions that any money the company had invested in research and development could be claimed back from HMRC as a deduction from corporation tax. As a result, the company’s tax liability was slashed from £29,000 to £16,000.

The team also advised the client to take advantage of the Patent Box tax relief scheme which means that Sundown Solutions only has to pay corporation tax at a rate of 10 per cent for anything it earns on innovations patented by the company after April 2013.

Sundown Solutions has a patent pending on a software encryption mechanism, Sundown Encryption (SE), and has worked with Haworths to submit a Patent Box tax relief application. As a result, once the patent has been granted, all revenue generated by SE will only be taxed at 10 per cent and Sundown Solutions will receive a retrospective rebate against all profits from the date of the patent application.