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Research & Development – not just for BioTech

The Chancellor, George Osborne, should have a lot of SME’s smiling. In his recent budget statement he announced that R&D tax relief for SME’s is to rise from 125% to 200%, and in 2012 to 225%. It highlights the government’s clear intention of creating a prosperous industry environment; stimulating growth and sustainability through research and development. For SME’s all over the UK, this move should be enormously beneficial, yet will the huge benefits of his message get through?

With only 2% of companies that could be eligible for the R&D tax credit scheme actually claiming, it’s obvious that much more awareness-raising and assistance is required. Jumpstart, the Edinburgh based technical R&D tax specialists are helping companies all over the UK get access to funds that they deserve.

The starting point is removing the deeply-held misunderstanding that R&D is not only done in clean labs of big biotech or pharma. Scotland alone is missing out on more than £540m that could be reinvested into the development and improvement of businesses from plastic moulding to iron works, printing, engineering, even software and food and drink. Through the unique combination of technical understanding and knowledge of the legislation Jumpstart is helping present successful cases to HMRC that sees machinery improvements, new products, processes and systems across all industry sectors being eligible.

The energy industry in particular is full of eligible research and development activities. For example, software companies that develop and improve grid management programmes using science and math techniques in a systematic manner to find better business methods, devices and products. Research like this, that is creative, original and investigative is perfectly aligned to the R&D legislation, which looks for evidence of technological advance and experimentation.

So too is applied research where companies seek to improve energy challenges by implementing improved products. This covers, for example, engineering companies that mould pumps or produce cables to supply power stations and oilrigs. The research taking place in the renewable energy arena where companies work on turbine dynamics and control for wind turbines, can also prove highly eligible. Even R&D that seeks to improve the waste management within the sector can be included in a claim.

Jumpstart’s knowledge of the legislation, their industry experience and scientific background is matched by their ability to craft technical reports for HMRC that set out the rationale for the claim. Produced by a team of technical analysts with doctorate degrees from engineering, chemistry and biology, to software and ICT, the technical submissions maximise a company’s claim value.

It’s this perfect balance of technical know-how and legislative understanding, that can help companies get what they deserve, and help create a prosperous industry environment that stimulates growth and sustainability longer term.

Together with many partners from industry and government, Jumpstart actively promotes the R&D tax credit scheme. This is not only a sound corporate strategy but it aspires to help Scotland and the rest of the UK become established and recognised globally as knowledge centres with strong networks of small and medium sized companies known for their innovative technology and products.

Here’s what Angela Mattis of ThinkTankMaths had to say about the lack of awareness and low levels of R&D claims: “The biggest issue is the lost investment for British businesses. It’s a loss of potential for economic impact and growth.”

Jumpstart’s technical analysts are securing these much needed funds for UK businesses by helping them to identify eligible R&D activity. The average refund secured for SMEs is £60k and the work is completed on a no win no fee basis. This gives clients peace of mind and confidence.

Ask yourself if you could be eligible:

• Have you improved or developed new tools, products or services using technology?
• Have you tried to improve your existing products through technical changes (faster, greener, lighter, smaller, more efficient)?
• Have you had to resolve technical problems with any of your products or manufacturing processes?
• Have you experimented with new equipment or production techniques?
• Have you found more efficient ways to produce your products or services?

If you can answer any of these questions with ‘yes’ then you might be losing out on funds that could have been invested in more innovation and development of your products.

Jumpstart have completed more than 1900 technical R&D tax claims and are more than happy to advise you on whether you too could be eligible. Alternatively, Jumpstart can refer you to a client who is in the same industry as you so you can make up your own mind.

Why not contact us for free advice or just a quick chat? You can contact the Aberdeen Chamber of Commerce at info@agcc.co.uk or Jumpstart directly at helpinghand@jumpstartuk.co.uk or call 0131 240 2900. You can meet us face to face too at the All-Energy event on 18^th and 19^th May via the Balmoral Engineering Group (Aberdeen Pavilion), Scottish Enterprise (Stand G20), or the Aberdeen Chamber of Commerce (Stand A165).

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