Logical A Architecture f for O Open B Banki king, I Internet n - - PowerPoint PPT Presentation

Logical A Architecture f for O Open B Banki king, I Internet n not r required

Bank PoP Bank Mainframe

Equinix Cloud Exchange Open Banking Aggregator TPP private TPP TPP TPP

Network Functions 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

Bank Mainframe

Smart Key/HSM Equinix Cloud Exchange Konsentus AISPs & PISPs

• MTLS Termination
• QTSP Key Store
• eIDAS Check
• TPP Status check
• TPP Request
• Trusted Request
• TPP status

Dominic Bonham Commercial Partner R&D Tax Specialist.

A Brief History

• R&D Tax Credits were introduced in 2000
• as a response to our lagging behind France and other

modern economies in the R&D per capita investment index.

• Other economies had done so with good results – and

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

as the government tries to counteract an outward flow of investment capital

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

The scheme allows you to claim back between 11-33% of all eligible costs as either a Corporation Tax Offset or a cash credit.

Retrospectively applicable

The scheme allows you to claim back two years retrospectively from your next year end.

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 categories that are eligible to be included in a R&D Tax Relief Claim

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. PAYE Subcon EPWs Utilities

Consumables

SW Licenses

Under 500 Employees Assets under €86 million Turnover less than €100 million

Yes No

SME Scheme

Large Company Scheme

19 19 – 33% 33% 12% 12% Gr Gross ss

Large Company (RDEC)

• r SME?

Cost Category SME RDEC PAYE Subcontractors (with some caveats) EPW Raw materials Utilities Software Costs

Legislation Changes : : particularly relevant to those with offshore development

2018 budget

"Preventing abuse of R&D tax relief for small and medium-sized 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 restricted to three times the company’s total PAYE and NICs liability for that year. This will ensure the relief is robust against identified abuse, including fraud, following the prevention by HMRC of fraudulent claims worth £300 million. The government will consult on this change.“

• Biggest implications for the tech sector
• Offshore business models not unusual in open banking
• 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