R&D Tax Relief – still time to get ‘Christmas present’ from HMRC

With just a short time to Christmas there is still time to prepare and submit a claim for R&D tax relief.  SHORTS, the Manufacturing Forum Sponsor recently submitted a claim for a £26k cash payment for a client – imagine what a lovely Christmas present that would be for your business!

HMRC’s recent report shows that more and more small and medium sized companies are making R&D claims, generating significant tax savings of up to almost 25% of qualifying expenditure and, in some cases, cash payments from HMRC. Nevertheless, the government believes the relief is still massively underclaimed, and the stats show smaller companies are less likely to claim than larger ones.

One of the barriers which prevents companies claiming the relief to which they are entitled is a misconception regarding the amount of time and effort a company needs to invest to prepare and submit a claim. Often smaller companies have less accounts resource to devote to tax issues but ask yourself how long it would take, and how much effort would be required, to generate profits equal to the tax savings available.

Simple three stage process

Shorts’ Radius team have a simple three-step process where we work with companies to prepare their claims as quickly and efficiently as possible, taking up the least amount of company time. After an initial discussion, either in person or over the phone, to establish whether a company has a claim, we then hold a meeting with the technical experts at the company to gather the information required, which we take away and use to produce the claim documents. HMRC aims to process SME claims within four to six weeks so, if you act fast, there is time to get a claim submitted and have the cash in your bank account in time for the new year.

Two-year deadline for claiming

Christmas is even more important for companies with a December year-end as 31 December 2018 marks the two-year deadline for submitting claims for the 2016 year-end. With Friday 21 December likely to be the last working day of 2018 for many companies, we would urge anyone who has a December year-end and who hasn’t yet made a claim for 2016 to contact us for a quick chat to make sure you aren’t missing out on this very valuable relief. R&D claims are made across all sectors – some recent examples of claims we have submitted for clients include;

  • a company working in animal health (£26k repayment)
  • an on-line retailer (£23k tax saved) 
  • a metal manufacturer (£12k saved) 

Our Radius team comprises a vastly experienced team of R&D specialists, including an ex-HMRC R&D Inspector, and we have never had a claim turned down by HMRC.  So, if your company is incurring costs in resolving technical challenges, no matter what field you are in, please get in touch with SHORTS and let THEM show you how easily your business could make its innovation pay.

Source: SHORTS

Rolls-Royce to continue BREXIT Contingency Plans

Rolls-Royce has confirmed it is to continue its Brexit contingency plans following the Prime Minister’s decision to delay the vote on her deal in Parliament. The manufacturing giant also revealed its profits and cash flow for 2018 is expected to be in the upper half of its guidance range.

The listed company, which is headquartered in Derby, added that it expects to complete about 500 large engines in total this year, lower than its projection in March of about 550 units.

Rolls-Royce said the reduction reflects supply chain “challenges that are affecting the whole civil engine sector and also early stage production ramp-up challenges” on its new Trent 7000 engine.

However, the business added that it is “confident” that Trent 7000 production and delivery volumes will “increase significantly” in 2019.

In its power systems division, the company has reported “strong growth” in the second half of 2018 while trading progress in defence remained in line with its full-year guidance, with revenues expected to remain stable.

A statement to the London Stock Exchange said: “Rolls-Royce notes the decision by the UK government to delay the vote on the proposed withdrawal agreement and political declaration.

“We will continue to implement our contingency plans until we are certain that a deal and transition period has been agreed.

“Specifically, we are working with EASA to transfer design approval for large aero engines to Germany, where we already carry out this process for business jets.

“This is a precautionary and reversible technical action which we do not anticipate will lead to the transfer of any jobs.

“We have begun to build inventory as a contingency measure, in line with the timetable that we gave in the summer.

“We have been liaising with all our suppliers and have reviewed our logistics options and have the required capacity available.

“At this point we have contingency plans in place and will update the market when we have clearer visibility.”

Source: Jon Robinson, Insider Media, 12 December 2018

Building work progresses at Hallam’s Health Innovation Park

The structural steelworks of Sheffield Hallam University’s two new research centres are now in place.

Building work led by BAM Construction Ltd is progressing quickly on the University’s National Centre of Excellence for Food Engineering (NCEFE) and Advanced Wellbeing Research Centre (AWRC), which will be based at Sheffield Hallam’s Health Innovation Park.

Situated at the heart of the Sheffield Olympic Legacy Park, the Health Innovation Park will bring together research and innovation alongside education, health, leisure and business. Providing opportunities for organisations that are active in health innovation to co-locate on the Health Innovation Park, the site will become a model of urban development that will drive economic growth, health improvements and community wellbeing.

Sheffield Hallam’s NCEFE, which is set to open next year, will focus on the application of engineering to improve food processing and address an industry-recognised shortage of food engineering expertise.

Designed to tackle food industry challenges such as productivity, health, minimising waste and reducing energy use, the NCEFE will support the food and drink industry through collaborative research and development projects and by developing new and enhanced facilities, processes and equipment and creating a knowledgeable workforce with experience of leading engineering systems and processes.

It will also include pilot-scale production facilities, laboratories, workshops and teaching spaces and will play a strategic role in developing advanced engineering capability for the food and drink industry, providing a major competitive advantage to the sector.

The Centre, and the associated Food Engineering degree programme, has been developed in partnership with the Food and Drink Federation (FDF) and the National Skills Academy for Food and Drink, along with funding from the European Regional Development Fund (ERDF) and the Office for Students (formerly HEFCE).

Professor Roger Eccleston, Pro Vice-Chancellor for research at Sheffield Hallam, said: “The Health Innovation Park will be a pioneering place that will translate excellent research into practical innovations to tackle the world’s health challenges and significantly improve global health and wellbeing, UK productivity and export potential.

“The NCEFE will support the food and drink industry in helping to keep the UK at the forefront of capability and efficiency in a very competitive sector.

“This project builds on our existing strong track record of attracting investment and providing excellent research and knowledge transfer, working in partnership with industry to develop education programmes that are designed to support organisations in narrowing the skills gap within the region and beyond.”

Set to become the most advanced research centre in the world for developing innovations that will improve population health and physical activity levels, the AWRC will form the centrepiece of the Health Innovation Park and will look to increase people’s mobility through lifestyle change and technological innovation to reduce the risk and consequences of chronic diseases. 

The key facility, which is situated opposite the NCEFE and is set to open later next year, has been supported by the Department of Health and Social Care, who have committed £14million of funding to the project.

The new Centre will feature indoor and outdoor facilities for 70 researchers to carry out world-leading research on health and physical activity in collaboration with the general public and private sector, with a focus on taking services and products from concept to market.

In 2015, Canon Medical Systems (formerly Toshiba Medical) and Westfield Health were announced as the first major, private sector partners of the AWRC and will provide cutting edge equipment and technology to assist with research. parkrun became the AWRC’s third major partner in 2016 and will work together with their two million registered runners to improve their health and wellbeing. 

Sheffield Children’s Hospital Charity and the Sheffield Children’s Hospital NHS Foundation Trust, Wosskow Brown Foundation and the Sheffield Health and Social Care NHS Foundation Trust have also become partners.

Its close links with the National Centre of Sport and Exercise Medicine will enable researchers to work with the population of Sheffield and use local communities to explore and test the potential of new innovations and products.

Professor Alison Metcalfe, Pro Vice-Chancellor of the University’s Faculty of Health and Wellbeing said: “Mobility is fundamental to a person’s physical and mental health. Finding new and diverse interventions to increase people’s mobility and engagement with physical activity and exercise across their lifespan can transform their health significantly.

“Bringing together public and private sector organisations is vitally important to developing products and services when it comes to growing our economy and UK productivity and our own practitioners, scientists, engineers and designers here at Sheffield Hallam regularly collaborate to address global health concerns.”

Richard Caborn, project lead for Sheffield Olympic Legacy Park, said “Seeing the steelwork on the AWRC rise six storeys above Sheffield Olympic Legacy Park is another key milestone in the redevelopment of Attercliffe.

“We are bringing wealth creation and job opportunities to the region, providing tangible evidence of how Sheffield is delivering the Olympic legacy of economic regeneration.”

For press information: Sarah Ducein the Sheffield Hallam University press office on 0114 225 4025 or email s.duce@shu.ac.uk