Author: Glenn

To apply for trademark protection in the UK, you will need to follow these steps:

Check if Your Trademark is Eligible
Ensure your trademark is unique and not too similar to existing trademarks. A trademark can include a word, logo, slogan, or a combination of these, but it must be distinctive and not misleading, offensive, or too generic.

Conduct a Trademark Search
Before applying, it's important to conduct a search of existing trademarks to ensure yours doesn’t conflict with others. You can search the UK Intellectual Property Office (IPO) database for registered trademarks and pending applications.

Choose the Right Trademark Class
Trademarks are registered under specific "classes" that define the types of goods or services covered. There are 45 different classes (34 for goods and 11 for services), and you must select the appropriate ones when filing your application.

File Your Application with the UK IPO
You can apply online through the UK Intellectual Property Office (IPO) website. The application form will require details about your trademark, the goods or services it applies to, and the classes you’ve chosen.

The standard online application fee is £170 for one class, with an additional £50 for each additional class you include.

Apply here https://trademarks.ipo.gov.uk/ipo-apply.

Examination by the UK IPO
Once you’ve submitted your application, the UK IPO will examine it to ensure it meets the criteria for registration. If there are any issues, such as similarities to existing trademarks or incomplete information, the office may contact you for clarification or to correct the issues.

Publication for Opposition
If your application passes the examination, your trademark will be published in the UK Trade Marks Journal for two months. During this time, other parties can oppose the registration if they believe it infringes on their rights. If no opposition is raised, or if any opposition is resolved, the process continues.

Registration and Protection
If no opposition is raised, or any opposition is successfully resolved, your trademark will be registered. The UK IPO will issue you a certificate of registration, and your trademark will be protected for 10 years. After this period, you can renew the trademark every 10 years indefinitely.

By following this process, you can secure trademark protection for your brand in the UK, safeguarding your intellectual property from unauthorised use.

There is a basic principle that dividends or other distributions must not be paid out of capital even if the Articles of a company authorise such a payment. For the purposes of this article, reference to distributions includes dividends.

This is stated as follows in Companies Act 2006, section 830:

Distributions to be made only out of profits available for the purpose

(1) A company may only make a distribution out of profits available for the purpose.

(2) A company's profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made.

(3) Subsection (2) has effect subject to sections 832, 833A and 835 (investment companies and Solvency 2 insurance companies).

HMRC’s internal manuals go further and states that the Act lays down what may be termed the ‘balance sheet surplus’ method of determining profits available for distribution. Under this, a company can distribute the net profit on both capital and revenue at the particular time, as shown by the relevant accounts.

Section 830 lays down the basic rule, but it does not apply to investment companies and is qualified in respect of public companies by section 831. It states that a company’s profits available for distribution are its accumulated, realised profits (on both revenue and capital) not previously distributed or capitalised, less its accumulated realised losses (on both revenue and capital) not written off in a proper reduction or reorganisation of capital.

These definitions for smaller companies can be summarised as, dividends can only be paid if there are sufficient revenue reserves – excluding issued and paid up share capital – to cover the payment. Directors should have sight of up-to-date management accounts when making a judgement regarding a proposed dividend payment and the accounts should include a realistic estimate for any current year corporation tax liability.

If you are uncertain if your company meets these obligations, please call. We can help you crunch the numbers.

There are special rules to observe when employing an apprentice in the UK. Basically, an apprentice takes part in a structured training program that combines working with studying. Apprentices gain practical experience while earning a wage and working towards a recognised qualification. An apprentice can be a new or current employee.

Employers must pay an apprentice at least the minimum wage. The minimum rate is currently £6.40 an hour. Apprentices are entitled to the minimum wage for their age if they are aged 19 or over and have completed the first year of their apprenticeship.

The following steps to hiring an apprentice are detailed on GOV.UK:

1. Choose an apprenticeship for your business or organisation.
2. Find an organisation that offers training for the apprenticeship you’ve chosen.
3. Check what training funding you can get.
4. Create an account – you need this to manage funding and recruit apprentices.
5. Advertise your apprenticeship – find out how to create an advert or give your training provider permission to do this for you.
6. Make an apprenticeship agreement and training plan with your chosen apprentice.

Employers that do not want to hire and train the apprentice themselves can use a flexi-job apprenticeship agency. The apprentice will be employed by the agency but will work in their organisation.

This guidance is for employers in England. There are regional differences for those hiring an apprentice in Scotland, Wales or Northern Ireland.

In a recent press release, HMRC addressed some common misconceptions about who needs to file a self-assessment return before the 31 January 2025 deadline and clarifies some of the most widespread myths.

The press release seeks to dispel the following myths:

Myth 1: “HMRC hasn’t been in touch, so I don’t need to file a tax return.”

Reality: It is the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for self-assessment and file a return, including if they:

• are newly self-employed and have earned gross income over £1,000;
• earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits;
• are a new partner in a business partnership;
• have received any untaxed income over £2,500; or
• receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000 (this limit increases to £60,000 for 2024-25).

Myth 2: “I have to pay the tax at the same time as filing my return.”

Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023-24 tax year is 31 January 2025.

Myth 3: “I don’t owe any tax, so I don’t need to file a return.”

Reality: Even if a taxpayer does not owe tax, they may still need to file a self-assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the State Pension.

Myth 4: “HMRC will take me out of self-assessment if I no longer need to file a return.”

Reality: It is important taxpayers tell HMRC if they have either stopped being self-employed or they don’t need to fill in a return, particularly if they have received a notice to file. If not, HMRC will keep writing to them to remind them to file their return and we may charge a penalty.

Taxpayers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return.

Myth 5: “HMRC has launched a crackdown on people selling their possessions online and now I will have to file a self-assessment return and pay tax on the items I sold after clearing out the attic.”

Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a self-assessment return and pay Income Tax on the sales. 

It should be noted that you are required to notify HMRC by 5 October 2024 if you need to submit a self-assessment tax return for the 2023-24 tax year and haven't done so previously.

Self-assessment taxpayers are usually required to pay their Income Tax liabilities in three instalments each year. The first two payments are due on 31 January during the tax year and 31 July following the tax year.

These payments on account are based on 50% each of the previous year’s net income tax liability. In addition, the third (or only) payment of tax will be due on 31 January following the end of the tax year. If you think that your income for the next tax year will be lower than the previous tax year, you can apply to have your payment on account reduced. This can be done using HMRC’s online service or by completing form SA303.

It is important to note that you do not need to make any payments on account where your net Income Tax liability for the previous tax year is less than £1,000 or if more than 80% of that year’s tax liability has been collected at source.

There are no restrictions on the number of claims to adjust payments on account a taxpayer or agent can make. The payments are based on 50% of your previous year’s net income tax liability. If your liability for 2023-24 is lower than 2022-23 you can ask HMRC to reduce your payment on account. The deadline for making a claim to reduce your payments on account for 2023-24 is 31 January 2025.

If taxable profits have increased there is no requirement to notify HMRC although the final balancing payment will be higher.