Small Enterprise House owners Can Get Rewarded Financially For Modern Tasks
Are you a small or medium-sized company and have developed an innovative product, service or something new in your area?
Then you may be eligible for thousands of pounds of tax breaks even if your project is unsuccessful.
When it comes to recognizing innovation and entrepreneurship, research and development (R&D) independent tax advice, EY Breakthrough Incentives believes Swansea is a leader.
The company, which specializes in helping SMEs access R&D tax breaks, now has a dedicated team working with Welsh companies.
Newly appointed associate director, Sadique Masken, said he was passionate about helping companies understand and reclaim cash for innovation.
To show its commitment to the region, the company is sponsoring the Lifetime Achievement Award at the Swansea Bay Business Awards 2021 at Brangwyn Hall on Thursday, October 21.
Sadique, who has more than 25 years of experience working for corporate organizations, answers the following questions about the importance of R&D and its impact on tax breaks.
What is the R&D tax system?
It is a government incentive program designed to encourage companies to conduct research and development, or R&D as it is commonly known. It is a valuable source of money for companies to invest in accelerating their research and development, recruiting new employees, and ultimately growing.
There are two different R&D tax regimes – the large company regime and the SME regime. Which regulation a company can avail itself of depends first of all on its size, ie whether it is an SME or a large company.
What qualifies as R&D?
For tax purposes, there is a specific definition of R&D that is often wider than most would expect. The work eligible for R&D support must be part of a specific project aimed at advancing science and technology and relevant to your company’s industry – either an existing one or one that you would like to start based on the results of the research and development.
To get R&D relief, you need to explain how a project:
- Looking for advancement in science and technology
- Had to overcome insecurity
- Tried to overcome this uncertainty
- Could not easily be worked out by a person skilled in the art
These projects can include the research or development of a new process, product or service or the improvement of an existing one.
What are the eligible costs for R&D tax credits?
There are certain categories of qualifying expenses. This includes labor costs, outsourced R&D, externally provided labor (e.g. contract workers), consumables, utilities, software, and payments to clinical trial subjects.
Since companies have two years from the end of their billing cycle to submit an application, the qualifying expenses for an initial application can be quite high.
What are the benefits of R&D tax credits?
As a form of innovation support, R&D tax credits can transform your business. At EY Breakthrough Incentives, we are passionate about helping innovative companies realize the full potential of R&D tax breaks so they can grow. The government is benefiting from increased productivity, which is good news for UK businesses and good news for business. It can also lead to innovations that can bring about positive change on a global level.
Who are EY Breakthrough Incentives?
In 2020, EY acquired Breakthrough Funding Ltd, a UK-based independent research and development tax advisory firm specializing in helping businesses access R&D tax breaks through the small to medium-sized system. The transaction, which underscores EY’s continued commitment to the SMB market, resulted in the Breakthrough Funding Ltd team becoming an integral part of the EY Innovation Incentive R&D tax team, renamed EY Breakthrough Incentives. The company’s customer base is predominantly medium-sized privately owned companies.
How can the company help Welsh businesses?
Manager Director Brady Last was able to expand the business across the UK and was particularly keen to integrate the business with the Welsh communities, become part of the SMB network and raise awareness of the much needed and deserved funding for the area to accomplish.
She said: “When we see the obvious innovation and entrepreneurship in so many sectors, this is a great opportunity for us to work with companies in Wales. Having a dedicated team working with Welsh companies is paramount so that we can ensure that authentic, organic and long-lasting relationships can be built. “
If you think an R&D tax incentive might be an option, visit the website or send an email [email protected]
For more information on the Swansea Bay Business Awards, including tickets, visit the website here