Practical Legal Updates
1. Reduce the risk of R&D tax claims failing
The UK Research and Development (R&D) Tax Credit scheme is the most generous and widely adopted means of supporting R&D in early-stage companies. With loss making start-ups recovering up to 1/3 of the cost of qualifying R&D as a cash rebate. Getting it right and optimising your claims can make all the difference. See our blog with top tips on how to reduce the risk of your R&D tax claim being reduced or failing.
2. Considering employee ownership as an incentive and as an exit strategy?
Many companies with ambitious growth plans have staff as co-owners. Often this involves a share option scheme, such as an EMI, with a percentage of the company’s shares (typically 10-15%) reserved for staff. However, an increasing number of companies are extending staff ownership by creating an employee ownership trust (EOT). With more UK companies becoming employee owned our recent blog explores the benefits of an EOT along with some key considerations if you’re planning on using one as an incentive and/or as part of an exit strategy.
3. Setting up in other countries: employees v EOR v contractors
An important consideration when expanding into new countries is the ‘employee v EOR v contractor’ issue. How should you hire people abroad? How do you deal with paying staff and related taxes, local employment contracts, laws, etc.? See our previous blog on hiring globally here and on the hidden costs of employees working abroad here. And if you’re expanding into the US check out this blog, which gives some key considerations around hiring in this market.
4. Equipping remote workers
With the increase in remote working, many countries have implemented new laws that relate to home working, increasing workers’ rights around home working equipment and how employers should provide and manage it. And because of this the challenge of managing numerous dispersed home offices, instead of one or two core offices, can be logistically tough – especially when it comes to getting people set up compliantly. Check out our overview with some key health and safety tips to consider.
5. Protecting assets with non-compete / poach clauses
Having appropriate restrictive covenants in staff and supplier contracts can help protect your business and its assets, particularly when a key person leaves. Unfortunately, many businesses don’t have these tools (or the right ones) in place until it’s too late. See our basic guide here. And our follow up blog with top 5 mistakes to avoid if you’re using them here. If you want to discuss your employment or supplier contracts get in touch.
6. Hiring an in-house lawyer
We recently worked with Beauhurst to explore trends in fast growth companies hiring in-house counsel (a conversation we’re really passionate about and are always happy to have). We looked at when startups and scaleups start to think about hiring their first in-house lawyer and the value the right person can add. You can see the full article here.
It’s important to get the right legal support to match the stage of company growth and that’s why we love working with scaling businesses to provide our flexible in-house legal offering. You may also find Donna Sewell’s interview with CEO.digital interesting where she highlights how the right in-house legal support can positively impact sales and drive revenue growth. If you want to discuss any of this please get in touch.
We’re here to support you and your business – if you want to discuss any of the above or anything else please get in touch.