Research and Development Tax Credits/Research and Development

Our team are experts in Areande claims, meaning you can leave the claiming to us while you focus on the innovating.”

What is Areande?

Due to scientific and technological innovation, in 2000, the government developed a scheme that rewards it. This awards tax relief credit incentive companies to research, develop and invest in innovation, hire new staff and ultimately grow

Any money that is spent developing and improving products, services and processes automatically qualifies you for Areande r&d tax relief. This is regardless of your industry, business or sector.

Making an Areande claim allows you to either receive a cash payment or a future reduction to your tax bill. Though, most companies are actually eligible for a claim without even realising.

Tax is a compulsory financial charge imposed upon a tax payer (an individual or legal entity) by a governmental organisation in order to fund government spending and various public expenditure. Failure to pay tax (tax evasion) is punishable by law.

However, you can claim something called tax relief (which is what Areande does) which is a government program or policy initiative that is designed to reduce the amount of taxes paid by individuals or businesses.

You can claim for this, for instance, due to the amount of research and development you or your business does.

Research and development tax credits are a UK tax incentive designed to encourage companies to invest in research and de development. Companies can reduce their tax bill or claim payable cash credits as a proportion if their research and development expenditure.”

Research and development tax credits/research and development

Research and development tax credits are a great way to generate cash for your business.

Another way of explaining research and development tax credit is by seeing it as “expenditure credit" rather than tax credit. This is because tax is often seen as a formal term used for paying the government money; the thought of possibly being entitled to money being returned in tax that you’ve paid is obviously a dwelling thought as nobody wants to be wrongfully claiming tax credits.

So, seeing it as expenditure credits is a much more effective verbal use of the term as this means that there may be various research and developments within your business that requires spending the business’ money to develop or improve its own or other products, services or processes. This could be any business in any industry that does this, therefore the money spent doing the research and development of said business entitles the individual or business to research and development tax credit or “expenditure" credits.

So the research and development expenditure credit is a tax credit, this used to be 11% of your qualifying expenditure up to 31 December 2017. It was increased, though, to 12% from 1 January 2018 and then further increased to 13% from 1 April 2020. So, as of the last 5 months, any extra expenditures that individuals and their business has made, they are eligible to claim up to 13% of those expenditures back; this can be done best by Areande.

How can research and development entitle me to a tax credit?

Areande is recognised as one of the top companies for effectively seeing through a tax credit claim due and will ensure that your claim is upheld and thoroughly dealt with providing all relevant research and development expenditure information is provided. Areande are a dynamic company whose sole dedication is to getting the absolute most out of your claim. | City, county/region, postcode

Why Areande?

Areande is recognised as one of the top companies for effectively seeing through a tax credit claim due and will ensure that your claim is upheld and thoroughly dealt with providing all relevant research and development expenditure information is provided. Areande are a dynamic company whose sole dedication is to getting the absolute most out of your claim.

By Jemma Dixon

If you want more information or you are thinking about making a claim, please do not hesitate to contact is us on any of the following, you could be entitled up to 13% returns on your tax claims! Contact us:

CallAreande today on: 07123456789 | 0800 111 1111

Email Areande on: Areande@website.com

Or visit their website: Areande.com

Everything You Need to Know About R&D Tax Claims

The world of research and development (R&D) tax claims can be quite daunting and difficult to understanding. This guide helps breakdown R&D tax claims to provide you with all the essential information you need.

What is a R&D Tax Claim 

An R&D tax claim allows businesses to claim up to 30% of R&D related costs from the UK Government. The money is paid as a corporation tax refund at the end of each financial year. Businesses can file a R&D tax claim even if a project fails and does not achieve the initial desired outcome.

Qualifying for an R&D Tax Claim

To qualify for an R&D tax claim, you must prove to HMRC that the R&D carried out meets their detailed criteria. This can be broken down into two categories – technology and finances.

Technology

To meet the technology criteria an R&D project must provide an advance in science and technology. While it can be difficult to determine if you qualify, typically things to consider are cost and innovation.

If your project achieves something that others have not achieved or if you acquire new knowledge then it can be considered as R&D. If you spend £100k or more to develop a product in your project then it will likely be considered R&D.

Finances

A key component of qualifying for R&D tax relief is proving to HMRC that you have spent money developing your project.

For your R&D tax claim to be accepted you must prove the money was spent on any of the following:

·         PAYE staff

·         Subcontractor who delivered the project

·         External contractors who were paid a daily rate

·         Materials that were used and couldn’t be sold at full price

·         Software licenses required to deliver the project

It’s also important to note to qualify for a R&D tax claim you must:

·         Have a UK company

·         Must have spent money to build technology that meets the criteria above

·         Spent money during the last two financial years on the project

If you think you qualify for a R&D tax claim you can either contact a specialist to file your claim or you can choose to handle your own claim.

If you decide to process your own R&D tax claim you must take the following steps:

·         Write a technical narrative

·         Put together your financial calculations

·         Amend CT600 and file with HMRC

After a R&D tax claim has been filed, it is passed onto the HMRC R&D unit where the claim is reviewed by an inspector. If a claim is well prepared it will be accepted immediately and you can expect to receive money as soon two weeks, although in most cases it is likely to take 4-6 weeks to process.

If a claim is lacking some details, you can expect to be asked some follow up questions. It is quite unlikely that a claim will be rejected unless it is suspected that you have deliberately committed fraud. In these extreme cases an enquiry will be launched into your accounts and penalties will be imposed.

Although an R&D tax claim can seem straightforward it is usually recommended to contact a specialist to help guide you through the process.

Industrial Buildings Allowance

 In Manchester, the skyline is ever changing and ever growing. Although like metallic trees, cranes occupy the skyline but only to remind us that Manchester is stepping into the future. Areande as always takes the initiative to help with construction of new buildings. Companies can claim an industrial building allowance (IBA) for any building or piece of construction. By doing so they assist with  helping the future of the city.

Thanks to government funding with £100bn in the bank waiting to be put into play, we are excited to see infrastructure commence from 2016 to 2021. This is very exciting for the City as it promotes growth within the City. The Industrial Buildings Allowance began in the 1940s just after the Second World War. From the terrors of war the country had to rebuild itself. Industry was a powerhouse in the 1900s with the amount of factories across the country. The Industrial Buildings Allowance was seen an imperative arsenal to shape the country and future.

Working alongside Areande, the Industrial Buildings Allowance gives companies tax relief on the cost of developing a building. Due to the success this later went on to cover bridges, tunnels, walls.

There are numerous buildings across the City that have claimed Industrial Buildings Allowance with Areande. Innovation is the opposite side of the coin to redevelopment in the City. And along as the company shows promise we support any claim provided (depending on eligibility).

In the last ten years, Areande has assisted in the development of hundreds of homes in the North West from Liverpool to Manchester to Chester. Small companies who show promise towards innovation work hand in hand with us as we do not look what is but what can be.

We spoke to a CEO of one of Manchester’s top building firms regarding the future of the City. “Every month a new building gets approved in not just Manchester but the North West. This is incredibly exciting as we’re able to bring a new depth to this famous City and beyond. The Industrial Buildings Allowance allows us to claim tax relief back from materials and labour. When we worked with Areande their website was easy to navigate around, their eligibility calculator was simple to use and we received our claim in minutes. As we come out of this recession after the Pandemic, looking to the future has never been so important and vital in the recovery of our country.”

Now more than ever we must take these building blocks and try and bring it to something that shapes the future of not just Manchester but the United Kingdom. Supporting businesses, big and small is imperative to the success of the industry and build a road to a steady economy, a grander Manchester and a successful North West.
Tax Relief from Areande and their first class customer care aim to not keep the North West in the 21st Century but beyond also.

A Beginners Guide to Claiming Tax Relief

 If you ask anyone if they enjoy doing their taxes, you’ll probably get an eye roll, a smirk, maybe a sarcastic little snigger. It’s not one of the most enthralling tasks you can get stuck into by any means,however, they have to be done.

Being aware of our taxes, what we’re paying and why will set us up in good stead for the future. You may be eligible for tax relief and so many people out there are oblivious to that, they don’t know that they could actually be claiming tax relief or be eligible for a lot of incentives. If you’re under 75, have UK earnings that are subject to income tax for the tax year and are a UK resident for some of that tax year, then you may able to claim some form of tax relief. You may also be able to earn research and development tax credits.

Tax relief, in layman’s terms, just means that you pay less tax if you’ve been spending on money on business items or are self-employed, (these can be notebooks, pens, printing paper if you’re a writer, photographic equipment if you’re a professional photographer or even things like petrol or travel expenses).

Tax relief can also mean you can sometimes get tax money back or get it repaid in something like a pension fund. If you’re self-employed and you’re completing some form of tax return, then you can also include things such as business premises, stock, material, business insurance, items for marketing purposes and clothing, legal and finance costs are also covered and so is staff costs and subscriptions. Your company can receive tax relief if you have committed to some pioneering new idea, come up with something innovative or are carrying out research and development, as that could earn you research and development tax credits.

To be put simply, research and development tax credits (also known as R&D credits) are a UK incentive designed ideally to get more companies to invest in research and development. Companies can claim and sometimes substantially reduce their tax bills or claim and collect the research and development tax credits as part of the scheme.

When you’re first thinking about the long winding tax information packed road ahead though, trying to avoid any metaphorical roadblocks can be very daunting to say the least. So, here’s a few things you could try if you’re a relatively new addition to the wide world of taxes and everything is getting a little confusing;

1. Do Your Research

Doing extensive research is always so important with anything, but, taking some time to really get to grips with the tax system, what your business is entitled to and how you can go about claiming tax relief if you’re eligible is so vital, especially in today’s climate.

Knowledge is power and once you are equipped with that knowledge, then you can really get yourself in gear and think about where you ideally want your business to go from here. As noted earlier when talking about the research and development tax credits, a lot of people would have been unaware of them or what the importance of research and development was for their business. It is therefore imperative to do some research into what exactly you could be claiming for, what you’re entitled to and what you could possibly be doing to enrich your own ideas and creations within your business. You’ll feel a whole lot clearer about the situation in the long run!

2. Make Listsof Things You Could Deduct Tax From

There are lots of things that you can deduct tax from, and not everyone knows about some of them. It’s worth reading up on the matter, but, once you’ve followed step one and completed your research, it’s a good idea to make a list of things you could possibly include and deduct.

As mentioned before, this can everything from office supplies to business space. Have a real think and note down anything you can think of, that means you are more prepared and focused, it will help you understand and not leave anything out that may be potentially important.

Getting organised is vital and the earlier you do this, the better equipped you feel, the clearer your plan of action will be. It’s also important to jot down whether you think you fit into any other criteria, take a real hard look at sites which offer eligibility checks and tax information help (there’s a great one we will be name dropping in the next step, never fear), see their requirements and write down anything that may be relevant. You may have carried out some extensive research and development but not even realised that it qualified.

3. Sign up to Areande

Sites like Areande are great for beginners, intermediates and tax pros. The site is simple, though, so if you’re struggling a bit in the confusing big, bad world of tax, Areandeis an excellent alternative. The online staff are friendly and there’s always help about for when you’re feeling a little out of depth and a wholelot of confused. You can easily check your eligibility and see exactly how you qualify for tax relief or what next steps you need to take to change your situation. Areandehave lots of helpful blogs and tips on the site too which detail the criteria you need to fit to claim tax relief or to partner with them. It also helpfully sets out what kind of research and development your company needs to be doing in order to claim tax relief. For more information and to check your eligibility for tax relief today, visit the site at https://www.areande.com.

Ways Research And Development Can Help Your Growing Business

With the consistent evolution of technology and the nature of business today, research and development (R&D) has never been more necessary. Technological advancements are proceeding at an unprecedented pace, and without adapting to this near constant state of change, many businesses will get left behind; this is where ‘research and development’ comes in. As a concept, research and development is consistently perceived as a herculean task reserved for the most formidable minds; however, the reality is far simpler and more accessible than many are led to believe. Research and development can simply be understood as the innovative strategies adopted by businesses to develop or improve products or services. By its very design, research and development is exceptionally versatile, and as such, is applicable in most sectors of business and enterprise. It is also known to be particularly beneficial to growing businesses aiming to make a name in their respective industries. Below are just a few ways R&D has been helpful to growing businesses.

1. Unique ProductsAnd Services

Adopting research and development strategies gives your business a chance to stand out; by investing in R&D, your company can improve on what is already being sold, or can alternatively create a new and unique product which is different and more advanced than what is available to consumers. In terms of service, by observing the existing market, you can identify a gap in quality that needs attention and be the solution the consuming masses need. By being the solution to an existing problem, your business stands out, thereby engaging the attention of consumers.

2. Increased Profit

Creating a new product or service, especially one that fills an existing gap in an industry is a sure-fire to create a path to profit. Successful R&D projects have been known to create new and improved products, thereby providing an avenue to boost opportunities for increase in sales of products, thereby increasing income and ultimately, the bottom line. As earlier noted, the nature of business is constantly changing, as such, sticking to old products without room for advancement is a guaranteed way to be left behind when the industry advances;  his leaves a growing business stuck with outdated products. Why choose to be left in the dust when you can be leading the curve?

3. Tax Credit

Did you know that small businesses are entitled to 14.5% and 33% tax credit on qualifyingR&D expenses? While undertaking research and development projects can be daunting and financially risky, there are tax credits in place to ensure that you and your business do not undertake this risk alone. What’s particularly interesting about this is the fact that your business can still claim SME R&D tax credits despite not making any profit. While the ideal scenario is to make profit off your R&D projects, these tax credits ensure that your business is not left behind if immediate profit statements are not forthcoming.

Research and developmentis a concept all growing businesses should be familiar with. Beyond the aforementioned reasons, R&D can embiggen your company’s reputation, provide a competitive edge and even lead to expanding the business. As such, every business – regardless of the sector – is encouraged toexplore research and development strategies and take active steps in adopting them.

Why R&D is a Business Booster

 Research and development or R&D (as is its abbreviation), is the knowledge, development and enhancement that threads through a company and its team. Investing in research and development includes creating new products, updating old ones, enhancing services or elevating technologies. Immersing a company in R&D incorporates many segments of the business, including marketing, cost effectiveness and business strategy. 

But why should a company invest in research and development? How can it boost a business?

-Productivity-

R&D can catapult companies beyond their competitors because the productivity it can lead to is not easily matched. Often, research and development can improve the product or process that the business relies on, by making it more affordable or more fruitful. This makes the business more likely to prosper and overtake any competition.

-Marketing and advertising-

In certain businesses, R&D can be the best marketing tool because customers are always on the lookout for that shiny, new product or service. Honing in on research and development, in whatever scientific or technological bracket best suits your company, can be the best advert for your business - emphasising your brand new process, or a technology that’s never been seen before. In fact, putting together an artistic and creative marketing campaign regarding the delivery of a new product (or an updated product) can boost interest and, therefore, sales by an incredible amount.

-Tax relief and credit-

Engaging your business in research and development opportunities can entitle you to R&D tax claims or R&D credit, of which Areande can help you with. If you’re pouring business money and time into improving and developing products or processes, Areande can help you make a claim to receive a cash payment or a reduction in your tax bill. So, your business will be booming without the extra costs. Let us help you, help the economy!

-Morale and mood-

The mood and team spirit within a company is vital for its growth. A company cannot flourish if its employees are not happy. And with a focus on research and development, it would be almost impossible for your team to lose morale. If company employees know that their employer is always doing what’s best for them and the business, providing them with the resources and programmes to learn more and hone their skills and keeping their interests peaked then the spirits within the business will be high. As R&D is also likely to boost business sales then employees are increasingly likely to receive a bonus too - which is always a lovely incentive!

Many of the different angles of why a business should immerse themselves in research and development are clear. And R&D isn’t just about creating new and updated products. It can be research towards a new product or a scientific and/or technological means.

Overall, R&D can enhance your company’s advertisements and marketing, bring costs down, boost productivity and keep your employees happy. So, why wouldn’t you?

Contact Areande today to be rewarded for your company’s innovation!

How Your Small Business Can Survive Covid 19 Through r&d Tax Credits and Relief

 Industry is going through a difficult time with the onset of Covid 19. To some extent production has ceased and growth has been stunted. There are reports of many UK companies going into liquidation and laying off staff despite the government helping employees and employers through the furlough scheme.  However, for those determined to survive they should be committed to not standing still. Now is the time to look to the future and determine where growth can be gained.

The UK government are fully committed to helping small and medium sized companies survive the current crisis by offering further financial packages. In particular those sme companies who are themselves committed to r&d. In April 2020, not long into a countrywide lockdown, the Chancellor announced there would be £750m in grants and loans for sme's with a single-minded attitude to research and development.

On top of that are existing tax incentive schemes aimed at sme research and development. One is known as the sme r&d tax credits scheme. It enables small and medium sized companies to have those costs acquired during research and development to be offset through sme r&d tax credits and incentives. This is a big deal to those companies seeking a way through the current crisis.

Sme r&d tax credits allow small and medium sized companies to claim relief or credit between 24 & 26% of their r&d expenditure. This could make a huge difference and when added to other loans and grants they can help secure a companies future.

However, the sme r&d tax credits scheme does have certain conditions and requirements especially when defining a small or medium sized business or enterprise.  A sme must not have more than 500 staff and have a turnover of less than £100m (or there about) and have assets not exceeding £86m. This gives tax relief and credit to thousands of UK companies, including start ups who are determined to survive, grow and prosper through research and development.

Even if a small business is running at a loss, which would not be surprising given the current economic climate, sme r&d tax credits can be claimed up to 33%. Provided there is evidence to show the company has been involved in some form of research and development. Covid 19 may have put a stop to such r&d but even still a company can claim sme tax credits for aborted research and development.

To claim these sme r&d tax credits companies are recommended to contact specialist firms who have the expertise in dealing with r&d tax incentives, relief and credit. It can be a complicated process but one that will benefit the company greatly.

No company needs telling they are in the midst of hard times. What they need is hard hope, hope that comes with a practical answer. Sme r&d tax credits and other forms of relief the government has announced will ensure that UK businesses will not only survive but will continue the belief that the UK is at the forefront of innovation.

 

Is the Structures and Buildings Allowance the New Industrial Buildings Allowance?

 The Industrial Buildings Allowance was introduced by the government as part of its 1945 Income Tax Act to boost post-war productivity in industry. The idea behind the scheme was that, whatever the capital cost of constructing a manufacturing or processing building, whoever oversaw the building would be given tax relief. The Industrial Buildings Allowance was originally aimed at the productive industry, but it was expanded to include allowances on infrastructure, such as tunnels, bridges, roads, and even hotels and commercial properties. The Industrial Buildings Allowance allowed relevant entrepreneurs to pay less tax, usually for twenty-five years. Thus, the allowance provided an incentive to build industries that would boost the economy in a post-war society.

The Industrial Buildings Allowance no longer exists, having come to a phased withdrawal that ended in the financial year beginning 1^st April 2011. However, businesses can still claim tax relief based on this building work, such as the Structures and Buildings Allowance, which was introduced by the government in 2018.

Structures and Buildings Allowance vs. Industrial Buildings Allowance

 The Structures and Buildings Allowance gives a business a 2% flat rate relief over fifty years for building work on most non-residential buildings, such as factories, warehouses, and infrastructure, such as tunnels, walls, and bridges.

Initially, the Structures and Buildings Allowance seems to be an updated version of the Industrial Buildings Allowance. However, there is a main difference in how the tax claim works when the building is sold. Industrial Buildings Allowances had worked on the idea that, if a building was sold within its twenty-five-year claim, all of the allowances that had been claimed by the seller would be passed to the buyer to be written off over however many years remained of its claim. However, the Structure and Buildings Allowance works differently, as the buyer simply inherits the tax written-down value that remained.

Also, the Structure and Buildings Allowance does not have a fixed timescale. While the Industrial Buildings Allowance was set for twenty-five years, the government is lending the business tax relief until the asset is sold for profit under the new Structure and Buildings Allowance.

Are You Eligible to Make A Claim?

To claim a Structure and Buildings Allowance, there are three main conditions that you must satisfy.

1.      The Building Must Be in Qualifying Use

This means that the building you wish to claim tax for must be used for a qualifying trade, such as a hotel, sports pavilion, or is in use as a commercial building.

2.      The Expenditure Must Be Qualifying Expenditure

The qualifying expenditure on a building is the capital expenditure earned by either the person who constructs the building or by whoever has bought the building unused from a property developer.

3.      You Must Hold the Relevant Interest in the Building

If you have constructed the building or own it, then you are the person who holds relevant interest. If the structure is sold after the tax is claimed, then the new owner can claim tax allowances under the Structure and Buildings Allowance.

If you would like to find out more about being eligible for claiming a Structure and Buildings Allowance, our specialists at Areande will be happy to offer advice and a guiding hand.

Reasons Why you Should Claim R&D Tax Relief

 At Areande, we are HMRC tax specialist in R&D tax relief. We can help you get a tax reduction or a cash payment on your innovation projects. R&D tax relief will give you extra income which you can spend on developing your innovative projects further and growing your business.

The UK government introduced R&D tax relief in 2000 to encourage businesses to develop their scientific and technological innovation. It’s an incentive for all UK companies to carry out R&D in their industry, allowing them to create or improve products, processes and systems.

R&D tax relief schemes:

SME scheme is for companies with less than 500 staff and a turnover of under €100 million or a balance sheet total under €86 million.

Research and Development Expenditure Credit (RDEC) scheme is for large companies, but can also apply to SMEs and large companies who have been subcontracted to other companies. RDEC tax credit is 13% of your qualifying expenditure as of 1 April 2020.

Early this year, in July 2020, the government announced it wanted to increase public investment in R&D expenditure to £22bn per year by 2024-25. They want to encourage investment in innovative projects which could improve whole industries and benefit everyone.

For your innovative projects, the following qualify for R&D tax relief through Areande:

1. Staff working on R&D projects

·         Permanent employee salaries, wages, class 1 NIC and pension fund contributions

·         Externally provided R&D staff costs paid to an external agency

2. Subcontracted R&D services

·         SME scheme companies can claim for 65% of the payments made to subcontractors

·         RDEC scheme does not allow large companies to claim subcontracted R&D expenditure unless it is directly undertaken by a charity, higher education institute, scientific research or health service organisation, an individual or a partnership of individuals

3. R&D consumables

·         Items such as materials and the portion of water, fuel, and power directly used for R&D projects

4. Software used for R&D

·         Claim any software solely used in R&D

·         And, claim a portion of software partly used in R&D

5. R&D prototypes

·         Design, construction and testing costs

·         However, prototypes built for sale are considered as a production unit and outside of the R&D scheme. If you used R&D to create the prototype, then you can claim for design, modelling and testing costs but not production costs and materials

6. Clinical trial volunteers for R&D

·         Research organisations and pharmaceutical companies can claim for payments made to volunteers taking part in clinical trials

7. Contributions to independent R&D

·         Only large companies can claim R&D tax relief on contributions they make towards funding independent R&D. The R&D must be carried out by the hired company and related to your trade. Contributions must be made to an eligible individual or a partnership of individuals or organisations such as a charity, higher education institute, scientific research or health service

8. Collaborative working in R&D

·         If you are working with other companies on an R&D project, each company can claim relief on the qualifying costs they have incurred

·         If you collaborate with a university or a research institute, only you can claim relief on the qualifying costs

How Areande can help you

An R&D tax claim can be a manual, lengthy process. We take the hassle out, leaving you to focus on developing your R&D projects. We offer a service which is beyond compare and make claiming R&D tax relief simple.

 

If you are not sure if you qualify or have been working on an innovative project and want to claim, talk to us today

Innovating for a pandemic-proof future…can your business help?

 As businesses acclimate to the new measures necessitated to mitigate the spread the coronavirus, there is a growing consensus that the fabric of global business cannot return to its old form. While many individuals affected are stoically —and perhaps at times, a little wearily— referring to the challenges that businesses face today as ‘the New Normal’, some business leaders are taking on a more forward-thinking approach.

What is the future of global business?

What can we do better to protect public safety?

How can we innovate to help our sector function in the instance of future health crises?

Many companies, across sectors, are leading the way in committing to developing creative solutions to not only ensure their business survives amidst a pandemic, but has the potential to thrive.  

Eating Out

Following the easing of lockdown measures across much of Europe, many punters are enjoying a long-awaited return to their favourite cafes, bars, and restaurants. This supported the findings of retail analysts, Kantor, whose study into social media revealed that eating out and going to a bar with friends were among the top three things people were looking forward to, ahead of lockdown easing.

Now many countries have seen eateries reopen- often under specific restrictions- those working within the sector are looking for innovative ways to sustain business, while boosting customer confidence.

French designer Christophe Gernigon has caught many imaginations- and no shortage of media attention- with his ‘PLEX’EAT’, which is made from Perspex. The PLEX’EAT represents an oversized, transparent lampshade, and allows customers to eat in their own personal bubble, while dining out at their favourite establishment.

Meanwhile, in South Korea, robot bartenders are preparing cocktails for punters as part of their government’s campaign for ‘distancing in daily life’.  

Architecture

The coronavirus pandemic has had a devastating effect on the residents of care homes. In the UK alone, coronavirus is reported to have claimed the lives of 66,112 care home residents since the outbreak (as of June 2020). In an article for the The RIBA Journal, Stephanie Cousins observed, “care homes across the UK were devastated by Covid-19, a situation exacerbated by the fact many are densely populated with residents forced to share bathrooms where infections can spread.” She later posed, “Should minimum standards be made more fit for purpose and conducive to health and wellbeing?”.

As many countries look for safe ways to reopen schools and universities, attention has also turned to designing safe teaching spaces. London-based studio, Curl La Tourelle has proposed the UK’s first ‘pop up school’, in the form of socially-distanced outdoor tents. The idea is currently being trialled at Manorfield Primary School, in Tower Hamlets.

Health Protocol Compliance

Supervision of public adherence to safety protocols brings unique risks of its own. Robotics can be the salvation. US company Boston Dynamics created ‘Spot’ a robot dog, which a park in Singapore, reminding the public, “Let’s keep Singapore healthy […] Please stand at least one metre apart”.

The Future: Research and Development

Research and Development initiatives encourage businesses to find innovative solutions that can take on the challenges we face, in these unprecedented times. In the UK, businesses which innovate could be eligible for Research and Development tax relief.

What is Research and Development tax relief?

Research and Development (R&D) reliefs support companies that work on innovative projects in science and technology [GOV.UK]. According to information from gov.uk, “work that qualifies for R&D relief must be part of a specific project to make an advance in science or technology […] it cannot be an advance within a social science- like economics- or a theoretical field- such as pure maths.”

Is my business eligible for R&D tax relief?

There is specific, but broad criteria, which can qualify a business for Research and Development tax relief.

Areande, innovation tax relief specialists, offer a streamlined service which uses advanced technology to claim back as much as possible. They could help your business secure either a cash payment, or a reduction in your tax bill.

What replaced the Industrial Buildings Allowance

 

With building (and rebuilding) at the forefront of the government’s post-coronavirus strategy, it’s no wonder that infrastructure is a hot topic right now. The new “build build build” plan from Boris Johnson focuses mostly on creating new homes from the regeneration of vacant and redundant buildings, and it’s being heralded as “the most radical reform to our planning system since the Second World War”.

After the Second World War, it wasn’t just the planning system that changed. In a bid to rebuild the country, the government lowered the cost of construction for businesses by introducing the Industrial Buildings Allowance (IBA). The Industrial Buildings Allowance formed part of the Income Tax Act and it was designed to encourage companies to start building.

Offering tax relief on the cost of constructing a building to be used for manufacturing, the Industrial Buildings Allowance gave projects tax relief for up to 25 years after construction. It first only included buildings but then expanded to include other structures such as walls, tunnels and bridges.

But the Industrial Buildings Allowance was discontinued in 2008, 63 years after its introduction. So for companies looking to begin new building projects now, what tax relief is available?

What replaced the Industrial Buildings Allowance?

Ten years after the abolition of the Industrial Buildings Allowance, a new scheme was introduced that many saw as its direct replacement. The Structures and Buildings Allowance (SBA) was formed in 2018 and applies to the costs of building projects that are incurred on or after 29th October 2018. The commencement of the scheme was relatively complex, and included measures to prevent taxpayers altering existing building projects to fall within the relief.

 

Similar to the Industrial Buildings capital allowance claims, the SBA covers factories, warehouses, bridges and tunnels. But the scheme also covers more modern requirements like office and retail space, allowing a vast number of businesses to claim the relief. The structure or building must be in use (or used within the last two years) in order to claim the annual allowance.

What is the Structures and Buildings Allowance?

The Structures and Buildings Allowance is applicable to a majority of projects, but excludes land and properties for residential use. There are also caveats that deal specifically with property leases, so that landlords and tenants can both claim under the scheme.

When the SBA was introduced, it offered tax relief on new construction expenditure for 50 years at a rate of 2% per annum. However, when the Finance Act 2020 was introduced, it changed the rates of the Structures and Buildings Allowance to 3% of expenditure over 33 and a third years. For the period between October 2018 and April 2020, an additional amount of the 1% hmrc capital allowances can be claimed.

When claiming under the SBA, businesses must identify a ‘chargeable period’, which must either be from the date the business started using the building or from the date the expenditure happened. This includes new owners of structures, who can also claim tax allowances under the scheme as long as the allowance statement is kept up-to-date.

Returning to Work? Make it Right. R&D Tax Credits

 The Great Return to Work

So, very shortly you’ll be returning to the daily hustle and bustle of office life. As productive as you may have been working remotely, sometimes, nothing beats being hands-on with an ear to the ground and your finger on the pulse.

The COVID-19 pandemic of 2020 has reasonably caused many of us to reflect on our personal productivity and output; both professionally and personally.

In many ways, the world stopped in motion; however, it has given us the opportunity to reset, re-evaluate and redesign the ways in which we work.

Did You Know? R&D Tax Credits Could Help You

Did you know that you may be able to claim tax relief on your Research & Development (R&D) expenses? Believe it or not, many small-and-medium enterprises (SMEs for short) are remain unaware of such a helpful scheme.

For perspective, on average, SMEs claim approximately £50K per year utilising R&D tax credits.

If you haven’t already investigated the potential benefit to your business under the R&D tax credits scheme, make the return to work your opportunity to make it right.

Tell Me More! The Details R&D Tax Credits

The scope of the R&D tax credits scheme is vast and wide.

Theoretically, the diversity of industry sectors it covers are endless. So long as your business is registered as a limited company within the UK that is subject to Corporation Tax and you have traceable expenditure on R&D, the scheme may be of benefit to your business.

Okay... I think I Am Eligible. What is R&D?

Put simply, R&D is the procedure in which a company may innovate or reformulate products, procedures or services.

This process can be in the design and development of new or existing products and services.

Yeah! My Business Conducts R&D. What Things Should I Highlight?

You will be happy to know that the costs that may reasonably attributed to R&D expenditure are surprisingly vast and robust. Staffing costs (including that of admin) may be included within the calculation provided they are in direct support of the project.

So too are the cost of raw materials, utilities and other consumables.

For the benefit of R&D tax credits, some software license may be included within the R&D tax calculations. There are limitations to which software licenses may be included for the relevant calculation; however, as computer aided technology and software becomes more integral to business – as well as the increasingly more common remote working options – it does seem that such limitations will become more robust and bespoke as time goes by.

It must also be noted that to make benefit of the R&D tax credit scheme, such expenses must be attributed to the R&D of goods, services or processes that may benefit your industry sector, and not limited to solely your own business.

Just So I Know…What Can’t I Include?

Great question!

The Government has given succinct guidelines as to what cannot be included within an R&D tax credit claim. They are:

·         Capital Expenditure

·         Production and distribution of goods/services

·         Any costs relating to the purchase of land and rent/rates

·         Any costs of trademarks and patents.

Great! What Shall I do Now?

Well, the first priority would be to look at your business model and determine whether you have conducted R&D and what costs can be attributed directly to that.

The scheme is used to reward innovation and improved output, so it is advisable to make use of the assistance available.

Here at Areande, we specialise is assisting businesses make the most of their innovation expenditure and R&D tax relief.

Get in touch with our expert team today.

4 RESEARCH AND DEVELOPMENT COSTS YOU CAN CLAIM BACK FOR.

In these uncertain times, businesses can’t afford to throw thousands away every year can they? Well, they are and you could be too.

There are currently billions of pounds of unclaimed innovation tax relief and that’s not a shock considering less than 1% of businesses are actively claiming.

Why? Simple. They don’t know that they can even claim in the first place...or what even categorises as a claimable research and development cost.

An eligible R & D cost would be any money spent developing or improving any products, services or processes. You may already be doing it and not even knowing. don’t worry, you’re in the majority. Hopefully the following list will break them down and explain.

Here are 4 Research and Development costs you can claim for:

1)      STAFF COSTS

Developing something new usually has some staff costs attached. You may have to hire some extra people to develop it and get it off the ground. Or hire someone on a subcontract basis or even a freelancer.

You can claim for it all.  Any staff you have hired to further improve a product, service or process all falls under research and development.

2)      MATERIALS

Depending on the business this may vary but there may be some material costs. For example, if a prototype has been manufactured or parts have been ordered to build a new product. again, this is a cost you could be claiming back on.

3)      SOFTWARE

This can also vary depending on the business. Software Cost could be any software you have had to purchase to either further develop or create something new. But let’s say your new product is software. You may incur some Software Development Cost. Either way, you can claim.  

4)      UTILITIES

You can even claim any water, lighting and heating used for any research and development purposes!

FACTS

-          UK paid out £4.3bn in claims in 2018

-          Over 30 bn is spent on R&D per year

-          Approximately 50,000 claims per year are submitted to HMRC (and that’s still less than 1%)

Your business could be losing thousands by not claiming on these Research and development costs and it isn’t just the four listed, there’s more!

It couldn’t be easier to check with companies like Areande. In a few clicks you can check if your company is eligible online. https://www.areande.com/check-eligibility/

Or if you want to check exactly how much you could be owed through the easy-to-use calculator, click here: https://www.areande.com/calculator/

The experts do it all for you so it’s a win, win!

You don’t have to worry about dealing with HMRC or any paperwork. You can simply watch the money you save come back to you.

Why do the government want to help you? They want you to Research and develop and as a business owner and you should too.

I will also link the website that has a fantastic live chat to answer any queries you may have. https://www.areande.com/.

A few minutes of your time may be the difference between you having thousands or having them taken off you.

Make the most of this fantastic scheme.

By Marcus Hardaker