Our client designs and manufactures products for use in patient care environments in the healthcare sector – their products are in use in a wide range of locations and are designed to function effectively in the most challenging of mental health care environments.
The company’s development team consult with leading experts in the healthcare arena and seek to fully understand the challenges that face healthcare staff and their patients.
The company’s products deliver appreciable improvements to the safety and wellbeing of healthcare workers and their patients. They continue to be innovative and a leader in their field in designing products which really make a difference – in recent years they have explored how they can support those with dementia and in the fight against COVID-19, creating brilliant product solutions in these areas.
Accessing SME R&D tax reliefs has provided added incentive to the team’s continual innovation efforts. The company has had patents approved (and has others pending) in relation to their in-house innovations, allowing them to access the tax savings available under the Patent Box regime in addition to protecting their key IP.
Initially, our team supported the company in making their first claim for R&D tax reliefs and in understanding the Patent Box. We now support the company with their annual claims for R&D and Patent Box claims, keeping in touch regularly and we are always interested to hear the new innovations the team are working on.
The combined R&D and Patent Box claims deliver substantial Corporation Tax savings for the company. In recent years these savings have equated to around £120,000 of savings annually.
“As a UK based SME we greatly value the tax relief that we receive through the R&D and Patent Box schemes as this provides us additional capital to continue our product development plans and make further investments in staff and plant equipment to position our company as global leaders in the healthcare products that we sell in the UK and beyond.”
— The client
Our client is involved in providing consultancy services on major construction projects, such as building bridges, roads and other construction projects from around the world. This often involves finding solutions to engineering issues. R&D tax benefits, in the form of repayable research and development expenditure credits (RDECs), may be available where these are innovative and technologically challenging, pushing the boundaries beyond known or readily deducible solutions.
Solving engineering issues can sometimes be costly, requiring the company to invest in many man hours of technical expertise to come up with a viable solution. In order to reduce the overall cost of investment, the company sought to claim RDECs from HMRC.
We were asked to help maximise the available RDECs that could be claimed from HMRC. In order to do this we had to work closely with the company to identify all of the innovative projects that were technically challenging. Having done this we then sought to identify the attributable R&D cost of each project and to prepare the R&D claim.
The R&D claim resulted in a cash repayment from HMRC of £118,000.
Our client operates in the printing industry, offering high-end printing services to a wide range of markets including the food and drink sector. In a retail world where products need to stand out and consumers are calling for reduced (and greener) packaging, while retailers are looking to keep costs low, the company is having to continually innovate to stay ahead.
The client has invested in the most up-to-date, market leading presses, high-end inspection camera systems and finishing equipment to ensure production is of the highest quality and efficiency, and its team have worked hard to expand its offering of print finishes and the range of production materials on which they can print.
A key focus has been moving certain products from lithographic printing methods, which require multiple passes through a printing press, to flexographic methods which can be achieved in a single pass. To achieve a matching output from this less costly methodology takes considerable investment of time, knowledge and determination.
The enhancement in printing techniques, required research into the developmental processes, causing significant modification to existing machinery. The client sought to access the tax incentives available to innovative UK companies to contribute towards the costs of their continuing programme of innovation.
We helped the client to access R&D tax reliefs resulting in a refund of corporation tax previously paid and in claiming a reduced rate of corporation tax available to companies with self-developed patented products (the Patent Box).
The claim enabled the client to access tax reliefs totalling £185,000 via a combination of R&D tax reliefs and patent box savings.
Developing innovative environmentally sustainable solutions can be very costly. Our client’s trade comprises that of comprehensive waste management. The directors are sector leaders and have been instrumental in introducing better environmental and safety practices to their trade, through developing innovative solutions. Enhancements by the client has enabled significant improvements to the level of waste collected being recycled, reduction to noise pollution caused by the client’s activities and improvements to safety for vulnerable road users.
The client has invested significant resources in these initiatives and sought to access the tax incentives available to innovative UK companies to contribute towards the costs of their continuing programme of innovation..
We helped the client to access R&D tax reliefs resulting in a refund of corporation tax previously paid. Our support ensured that the claim process caused minimal disruption to the company’s innovative team.
The R&D claim resulted in the client receiving £111,000 of R&D cash refund from HMRC. The scheme has enabled the client to reinvest funds into further innovation projects.
For many start-up businesses the early years are spent developing their product base and establishing their brand. This can be costly and tends to come at a time which is either pre-revenue or when sales are modest and income minimal. So for many early stage businesses having adequate funding is critical to the business’ ultimate success. Whilst there are many sources of funding available to businesses, for those that are innovative research and development (R&D) cash tax benefits can be available.
The Company was a start-up business seeking to access the global taxi market by manufacturing and selling roof mounted pods superior to those already on the market.
They sought to achieve this by developing a digital media pod that could provide remotely updated, location specific, digital advertising display messages. However, this required a significant investment in technology, and with limited funding available the company, they needed to access alternative sources of funding.
We identified a number of different aspects of the development on which R&D cash tax benefits could be claimed and helped them prepare their R&D claim.
The R&D claim resulted in the company receiving £85,000 of R&D cash tax credits from HMRC.
Our client is a young, growing, local brewer of craft beer. The business is constantly looking to experiment with processes and new ingredients in order to improve the quality and range of its beer.
The company had made a claim in the past but were unaware of the full extent of what could qualify. As a small employer, an enhanced claim would significantly benefit the company’s finances.
After meeting with the directors at the brewery, we identified that they were undertaking projects that would qualify for relief. The many variables involved in the brewing process mean that, even for the most experienced brewer, many technical uncertainties existed from the outset of development and it was uncertain whether a drinkable product would emerge at the end. The introduction of brand new varieties of key ingredients into known processes, as well changing consumer demands, add to the uncertainties to be resolved.
Following identification of qualifying projects, we agreed with our client the extent of the assistance required in producing the R&D report for HMRC.
The R&D claim resulted in the company receiving £24,000 of R&D cash tax benefits from HMRC, the equivalent cost of employing their head brewer. They also now have a framework in place for future claims based on continued pursuit of improved processes and new recipes.
Nurturing a business can be challenging with many different factors influencing whether the business thrives.
Many businesses maintain an edge over their competitors by being innovative and developing new and improved product ranges. However, investing in innovation tends to come at a cost and this can be a significant drain on limited funding resources. For innovative businesses research and development cash tax benefits can provide a valuable additional source of cash funding.
The Company’s trade comprises the manufacture of non-metallic cladding systems for the application in the oil, gas and petrochemical sectors. However, in an increasingly competitive marketplace the company had to invest heavily in order to ensure its cladding remained a market leader.
The company sought to develop a more cost effective system, using glass reinforced polyester resin (GRP) technology that would aid installation of the cladding whilst remaining fully compliant with the regulations for low flame spread and smoke emissions.
The development required a significant investment in technology, and with limited funding available to the company, they needed to access alternative sources of funding.
We identified a number of aspects of the development on which R&D cash tax benefits could be claimed and helped them prepare their R&D claim.
The R&D claim resulted in the company receiving £81,000 of R&D cash tax credits from HMRC.