Why all the confusion with R&D tax credits? 3 entrepreneurs make things clear
Chris Unwin, founder of conveyor and automation system manufacturer L.A.C Conveyor Systems, consults three entrepreneurs to find out the value of R&D tax credits for growing businesses.
Were all aware of the importance and benefits of research and development (R&D) it enables us to grow our businesses, to stand out from our competitors and to meet the ever-changing needs of the consumer.
This got us thinking there must be so many other companies out there, keen to get some help with research and development but unaware of where to go and confused by the government initiative.
Eager to promote the benefits of the relief, weve spoken to businesses up and down the country that have been successful with their claims in the past, plus R&D expert, Jamie Smith.
Alastair Williamson, CEO at RanPlan Wireless
In the attempt to improve wireless communications, RanPlan was founded in 2006 which conducted research in and around dense urban areas. In 2012, Ranplan started the development of a suite of wireless radio frequency network planning, simulation and optimisation tools, and launched its first product in 2015.
CEO, Alastair Williamson stated, I think the confusion lies around what small companies can claim for as they need to meet certain qualifying conditions, but the process is quite straightforward and is part of the tax return.
The result of claiming R&D tax relief? Successfully claiming tax relief for six years has led to a total claim of over 1m and encourages RanPlan to hire further developers. Williamson says this enables us to carry on research into wireless communications, leading to the advancement of the world’s only tool capable of planning and designing networks for dense urban environments in coordination.
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Aasis Vinayak, Founder and CEO of Fly My Cloud Ltd
Fly My Cloud, founded in 2015, is a technology company based in London. They believe that all businesses should be able to harness the power and scale of the cloud.
One of their services focuses on supporting businesses to migrate their applications and data to the cloud by automating the deployment, scaling and backup aspects of the process. They also provide consultancy in relation to big data and artificial intelligence for businesses large and small, helping them to future-proof? their businesses.
Founder and CEO, Aasis Vinayak said: I found out about R&D tax relief from one of my clients, which prompted me to do my own research. R&D tax relief has helped us to plan our growth strategy more effectively and prepare for the future, enabling us to take calculated risks in our investment plans.
Vinayak also adds that SMEs should definitely take advantage of such government schemes to fully invest in meaningful and sustainable innovations.
Jamie Smith, co-founder of DSMRandDTaxCredits
Founded in 2017, by Jamie Smith, Darren Moynan, and Paul Donohoe, DSMRandDTaxCredits help clients with the R&D tax credits process and have done for over 15 years through their own accountancy practice and with the previous employer.
The number of SMEs claiming R&D tax incentives has more than doubled; 34, 060 made a claim for 2016-17 compared to just 15, 585 three years earlier. Are you making the most of the tax breaks for innovation? more»