R&D

DR. ECE AKSER ON HOW TO MAXIMISE BENEFITS OF R&D INCENTIVES

With the turmoil and uncertainties facing the UK, never has cash flow become more important for a company. None of us can completely and accurately predict what’s coming around the corner or how the UK economy will be affected.

With this in mind, it makes sense to take advantage of the incentives that are available; especially those available (and encouraged by Her Majesty’s Revenue & Customs) to any company subject to UK corporation tax.

One of those incentives is Research and Development (“R&D”) Incentives. R&D sounds really complex for most businesses and as a result can often be overlooked, however it isn’t as complicated as many think. R&D Incentives do not only relate to the groundbreaking developments that are performed by scientists and engineers – they are also available for many businesses that are developing new products or manufacturing processes or even improving existing ones. R&D Incentives is there to reward companies for doing what they do best – running their business!

“We’re already claiming”

But are you claiming everything you are entitled to? Almost every business is probably doing some sort of activity that meets the criteria for claiming the incentives. Sadly, a lot of these businesses are missing out, either in full or in part, by not including everything they can and with up to 33.35% cashback available, that’s criminal!

“We’re just doing our day job; we couldn’t possibly qualify”

Before practising as an R&D advisor, I trained as an Engineer and worked in industry as a Senior Scientist. Looking back, such a large majority of what I did on a day to day basis would have qualified, but I assumed that R&D incentives were for companies that undertook blue-sky research. However, R&D Incentives can be applied to any business that designs or makes something!

I speak to so many businesses across a wide range of sectors and backgrounds, including those that would traditionally be seen to be undertaking R&D, that believe they do not qualify for relief as they feel they are simply “doing their day job”. During my time as an R&D practitioner, I have helped companies ranging from pharmaceutical, engineering, manufacturing to construction, software and technology.

So, ask yourself, are you working on:

- New products and/or making improvements to existing products e.g. different materials/better performance?

- Making improvements to manufacturing process e.g. increased efficiency/yield/recyclability, reduced wastage?

- Undertaking software development e.g. to increase functionality/speed, achieve system integration, reduce downtime.

Also, you might not be calling it “R&D” and instead might be calling it process engineering, applications engineering, value engineering, light weighting, miniaturisation, environmental or legislative requirement changes. In reality, the motivation for the work is not relevant and nor does it have to be identified as R&D. If you are undertaking any of the activities or even something similar, then the chances are you are undertaking R&D activities that may allow you to access R&D Incentives.

Choosing the right specialist to help you

I have often heard “advisors have come and talked to us about R&D, claiming to be ‘experts’ but this is the first time we’ve ‘got it’ and can see why we might have something to claim”. This is why it is so important to choose the right advisor, with the right experience, as articulating what “R&D” means within the context of your sector and your business, can be challenging.

There are four things that make the Cooper Parry team different, and why our R&D Incentives team is on a roll. These are the “golden 4” in R&D circles:

- Technical background: In our R&D team we have 4 PhDs and specific expertise in materials science and construction, as well as pharmacology, software and technology, mechanical and marine engineering, chemistry, the list goes on. Our team is full of people who know the industries we work in and know what is needed to find it.

- Tax qualified: Of course, as well as having the industry knowhow, Chartered Tax qualified and accountants who are part of an award-winning tax team. The Best Practice in the UK.

- Experience: I’ve been working in R&D Incentives for over 13 years, with the Head of our Team, Chris Knott, having over 19 years’ experience (since the scheme started in 2000). We know how it works and the context behind each change – as does the whole team.

- Policy Setters: Chris is also part of HMRC’s R&D Consultative Committee, knows the changes coming up and has input into them. Chris is also one of only 5 to be part of the Chartered Institute of Tax Professional Standards Working Group, looking at raising standards in the R&D claims industry. Put simply, we are true experts in this area of tax.

Dr Ece Akser Bio

Dr Ece Akser is a Director in the R&D Incentives team at Cooper Parry, having joined with over 13 years of experience as an R&D practitioner preparing and agreeing R&D claims in the Big 4. Before working as an R&D advisor, Ece worked as a Senior Scientist at Procter & Gamble for over 5 years, leading technical teams to develop and deliver new product launch from concept to on-shelf, through the total supply chain. Ece has extensive knowledge of the R&D regime in the UK with an in depth understanding of the guidance and legislation on the definition of R&D for tax purposes and how this can be applied across a wide range of industries.

Have a question about R&D Incentives?

Then call or email Ece on 07786 438 296 or ecea@cooperparry and you can discuss how R&D Incentives can be applicable to your business. This would be a no obligation discussion, so what have you got to lose?