London Technology Week took place last month to celebrate London’s role as the “digital capital” and tech hub of Europe. Since the Mayor of London and the Prime Minister launched the Tech City Initiative five years ago, London has witnessed an exceptional boom in tech start-ups. Research has reportedly found a 46 percent increase in the number of digital technology companies in London, compared to the previous five years, which is set to boost the UK economy by £18 billion in 2015.
London Technology Week was not only a platform to highlight the accomplishments that London as a capital has achieved so far, but was also a chance for aspiring entrepreneurs and developers to showcase their ideas to potential investors. Based on various sources such as The Deloitte Fast 50, which measures a tech company’s value and success on factors such as rate of revenue growth, London & Partners have since announced fifteen companies as the capital’s “tech growth heroes”. This has included companies such as Just Eat, Shazam and SwiftKey.
So what is it about London that has attracted a wealth of interest from tech companies across the globe?
By hosting huge networking events like London Technology Week and identifying the fastest growing companies, London manages to create a transparent environment and inspiring atmosphere for many other tech startups to flourish in. London as a location is another reason for the influx of business-minded people from overseas, as it sits at the intersection of other global time zones, meaning it is the most accessible city for people to set up European HQs. English is also seen as a universal language, particularly in Europe, which means London is not only accessible for these customers, but also provides a common language to communicate by.
London also provides great opportunities and support for tech startups which means small businesses from other tech hubs like Silicon Valley and Berlin are also seeing London as an attractive location to grow their company. East London has been the dominant player on the scene but recent growth has been found in areas such as Croydon due to lower costs, showing how London strives to provide companies with a secure base even outside of its hotspot.
In terms of tax, London offers one of the lowest corporate tax regimes in Europe and companies can also find further support in the form of tax relieved investment. R&D Tax credits, Patent Box and Enterprise Investment Schemes are ways in which the Government supports businesses aiding investment and helping bring their ideas into realisation. At Kingly Brookes, we have provided support for a huge range of start-ups and are proud to be a part of this dynamic and ever changing sector. Our expert team provides tech companies with all the information and advice they need surrounding business advice, accounting and tax compliance and specialist tax advice on securing R&D tax credits and Patent Box tax relief.
We’re very pleased that London’s technology sector continues to flourish and evolve. Government support is crucial in this most mobile of sectors if we wish to develop, attract and retain the talent in this sector.
How we help technology companies
Kingly Brookes works with a range of technology companies, from fast-growing startups to multinational organisations. As well as providing a full range of accounting and tax compliance and advice our specialisms include assisting companies to make the most of the tax reliefs for R&D and the Patent Box. In the last two years alone, our partner John Moore has helped his clients claim back in excess of £45m in R&D tax relief. To find out more about how we can help please email John.Moore@kinglybrookesllp.co.uk or call us on 0207 292 8850.