Hazlewoods Innovation Team
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With all the recent noise regarding the significant changes to R&D tax incentives, it’s easy to overlook opportunities available to innovative businesses as well as the support out there to help.
In this article, we consider the support you may need at each stage of your company’s lifecycle.
Startup
This is when early concepts are being formed and where ideas are being created. Converting those great ideas into new technology can be cost prohibitive whether you are a startup or an established business. However, grant bodies such as Innovate UK offer a range of grant opportunities that could provide this much needed funding.
Help along the way:
Grant bid writers
A company can apply for its own grants, but, if you require support, a Grant Bid Writer can provide insight into the best grants to apply for and assist with the applications.
Grant audits
An Independent Accountant’s Report is often required to provide confidence that the costs incurred align with those permitted under the grant. Hazlewoods can undertake grant audits to provide this confidence.
Development
Whether you have obtained grant funding or not, the next stage of your innovation lifecycle is to develop the solution. If you are developing an advance or appreciable improvement in the current state of science or technology and the solution is not readily deducible by a competent professional (an expert in that field of science or technology), then there could be opportunities for tax credits on the qualifying development expenditure.
Help along the way:
R&D tax relief claims
Hazlewoods has extensive experience in preparing R&D tax relief claims. With recent significant changes to the way R&D is claimed, rates and the administrative process as well as detailed guidance clarifying the qualifying conditions, it is more important than ever to use a trusted adviser to assist with the collation and presentation of the claim to HMRC.
Commercialisation
Having successfully developed the new technology, you may be itching to get it out to the market so that you may start generating income to recover the costs incurred during development. However, before you do, you should consider whether the technology should be protected.
Protecting your technology:
- Protects your ideas from competitors;
- Provides opportunities for growth by identifying new markets and licensing or franchising opportunities;
- It can help to raise finance; and
- It can offer tax relief opportunities on the future profits generated.
Help along the way:
Patent Box planning and tax relief claims
At Hazlewoods, we can assist companies by explaining the complexities of Patent Box and assist with tax relief claims on the profits generated from patented intellectual property (“IP”).
We also assist businesses whilst they are still in the development phase as timely planning can help to ensure that tax savings are maximised when the technology is commercialised.
IP audits and patent applications
The Intellectual Property Office (IPO) has launched an IP Advance scheme split into two parts to cover IP audits and IP strategy including Patent applications. It provides part funding towards these services and is applied for through Innovate UK.
Applying for a patent and writing the necessary detail to provide the correct coverage to defend your IP is complex and Patent attorneys have the requisite STEM knowledge to understand and interpret the technology so that it may be protected.
IP valuations
An IP valuation may be useful when considering an exit to determine the value of your technology or to transfer the ownership from being owned personally to your company. It may also help with agreeing the value of royalty or licensing agreements.
Lending against your IP
As well as grant funding and tax relief, there may be an opportunity to borrow against your established IP to help fund your company’s future growth.
Ongoing IP services
A good IP adviser can provide ongoing support such as drafting IP contracts, enforce or defend IP rights, negotiate IP agreements, advise on IP strategy or undertake IP audits.
Contact us
As Accountants and Business Advisers, Hazlewoods can also support your innovation by providing the wider accountancy and taxation services, including accounts and tax compliance, payroll and bookkeeping support, VAT advice, tax advisory such as employee share schemes to retain key employees and Exit planning.
We work with a number of trusted advisers who can provide the guidance and support for grant applications, IP application, valuation and review and IP backed lending.
We would always recommend engaging a trusted adviser to help navigate the tax reliefs and opportunities above to ensure that all applications and claims available are well prepared and supported.
For more information on the above and on the other recent changes to R&D tax relief, please contact the Hazlewoods Innovation Tax team below.
