Logical A Architecture f for O Open B Banki king, I Internet n not r required Open Banking TPP private Aggregator TPP TPP Bank Bank PoP Mainframe Equinix Cloud Exchange Network Functions TPP Firewall Security: Data Cache & Analytics capability
Equinix, x, A API PI S Secu cure-Link Regulation • SOC1 Type Type 2 Document Controls , Supporting processes, policies, procedures, personnel and operational activities that constitute the core activities relevant to users • PCI DSS , enhance data security for payment cards • ISO 9001, Quality Management System to demonstrate ability to consistently provide products and services to meet the needs of Customers. Fraud Protection • Minimal threat of DDOS Attacks • Dedicated Infrastructure • Tier 3 Data Centre Service Security Enhancement • Certain customer data is best kept on soil • Enhanced Encryption • Security policy for On-premise and Cloud enabled
Equinix & & Konsen entus – Trusted ed a access f for authorised ed T TPPs Equinix Cloud Exchange Bank AISPs • TPP Request Mainframe • Trusted Request & • TPP status PISPs Smart Key/HSM • MTLS Termination • QTSP Key Store Konsentus • eIDAS Check • TPP Status check
Dominic Bonham Commercial Partner R&D Tax Specialist.
R&D Tax Credits The R&D Scheme exists to incentivise UK businesses overcoming technical challenge. By and large – the scheme exists to ensure that the UK economy has a thriving STEM and technical sector and a workforce that is equipped to maintain the UK’s position as a major economy. It’s focus is incentivising investment to equip the UK with the tools necessary to compete in tomorrow’s economy – open banking is a prime example. The Benefit A Brief History The scheme allows you to claim back • R&D Tax Credits were introduced in 2000 between 11-33% of all eligible costs as either • as a response to our lagging behind France and other a Corporation Tax Offset or a cash credit. modern economies in the R&D per capita investment index. • Other economies had done so with good results – and Retrospectively applicable as a result the scheme exists in some form in most major and emerging economies. • Brexit will likely have a beneficial effect on the scheme The scheme allows you to claim back two as the government tries to counteract an outward years retrospectively from your next year end. flow of investment capital
What Projects are Eligible? In order to qualify for R&D Tax Credits your technical team must have Looked for an advance in science or technology Encountered uncertainty in the process Have actively tried to overcome this uncertainty Done it in a manner which can't be easily worked out by a professional in the field The company must have taken on financial risk in doing so Keeping up to date with regulatory compliants (MiFid II and PDST2 are a massive driver of R&D in Open Banking – i.e. API deployment and security enhancements.
Six principle cost PAYE Utilities categories that are eligible to be Subcon Consumables included in a R&D Tax Relief EPWs SW Claim Licenses Whether the costs can be included at all, or at what percentage they can be included depends on context. For example software licenses couldn’t be claimed in totality unless they had no commercial purpose beyond the creation of the R&D project being claimed for.
Large Company (RDEC) Cost Category SME RDEC or SME? PAYE Subcontractors (with some caveats) Under 500 Assets Turnover less under €86 than €100 Employees million million EPW Yes No Raw materials SME Scheme Large Company Utilities Scheme 12% 12% Gr Gross ss 19 – 33% 19 33% Software Costs
2018 budget "Preventing abuse of R&D tax relief for small and medium-sized Legislation enterprises (SMEs) – To help prevent abuse of the payable credit, from 1 April 2020, the amount of payable R&D tax credit that a qualifying loss-making company can receive in any tax year will be Changes : : restricted to three times the company’s total PAYE and NICs liability for that year. This will ensure the relief is robust against particularly identified abuse, including fraud, following the prevention by HMRC of fraudulent claims worth £300 million. The government will consult on this change.“ relevant to those • Biggest implications for the tech sector with offshore • Offshore business models not unusual in open banking development • Companies can anticipate changes by editing team structures to meet optimum level of PAYE vs outsourcing. • Changes come into affect for any financial year ending April 2020 onwards
• 40 Years combined R&D Tax and Grants Experience • Strong Understanding of Open Banking Challenges • Ex-Big 4 Financial Consultants • Ex-HMRC Senior R&D Inspector of 17 years • Experienced MSc Computer Science qualified technical consultants with Fintech backgrounds Dominic Bonham Commercial Partner dominic@smegovcapital.co.uk 07960612791 || 0203 9831845
Recommend
More recommend
