Most industries are governed by legislative and regulatory bodies, and professional associations. These bodies range from the Health and Safety Executive (HSE), the Engineering Council, British Standards Institute (BSi) and the European Union (EU) Standards bodies including CEN, CENELEC, and ETSI.
On the surface, regulatory standards may appear tedious to some. However, dig a little deeper and they can define best practice by setting out guidance for products and their technical specifications. This facilitates the development of quality goods and services and enables business-to-business and business-to-consumer transactions.
Unfortunately, events such as the Grenfell Tower fire disaster reveal that sometimes regulations can be wholly inadequate. The regulations and standards governing fire doors, window systems and cladding products have been significantly reviewed and updated following the fire.
The impact of the Grenfell Tower disaster and the findings and recommendations of the subsequent inquiry have been the single most important driving force for Research and Development activity within the Fire Door and Windows sector for the past few years. This has resulted in the vast improvement in the safety of doors and windows in a fire situation.
If you are adapting or developing your products or services to address regulatory issues similar to the above – or to comply with other UK, European or International standards – then you may qualify for R&D tax credits. These can generate significant tax benefits.
Currently, for every £1 of qualifying R&D expenditure, a small to medium sized company (SME) in Northern Ireland and the rest of the UK can save 24.7p of corporation tax. Or if it does not have a corporation tax liability, it can cash losses in and receive a cash payment from HMRC at a rate of 14.5%. Large companies in the UK can also claim R&D tax credits, as can companies registered in the Republic of Ireland.
You can also potentially benefit from corporation tax savings if you have a patented invention, under Patent Box legislation in the UK. There is also the Knowledge Development Box legislation in the ROI.
The benefits are there to be claimed, although the rules relating to these tax incentives are complex and require specialist advice.
If you would like to know more about R&D Tax Credits, please get in touch to arrange a no-obligation discussion.