A leading UK manufacturer of printed circuit boards (PCBs) has claimed a six-figure sum under the research and development scheme thanks to a top tax specialist in the Midlands.
The Government has increased rates of relief for research and development, with relief now given at 225 per cent, as part of its drive to improve the competitiveness of the UK’s tax system and to encourage innovation and development.
One of the companies to benefit is Express Circuits Group in Roman Way, Coleshill Industrial Estate, Coleshill, Birmingham, which has saved £350,000 over the last few years after taking expert advice from Jeni Bramley, the Tax Director for Baldwins Accountants.
Express Circuits Group, which has a reputation as a dynamic player in the electronics industry, designs, manufactures and assembles circuit boards for various industries including health care, clothing, accessories, children’s toys, defence and integrated electronics.
The relief enjoyed under the Government scheme has allowed the company to inject further money and time into their research and development expertise as well as investing in state-of-the-art equipment and highly-skilled, experienced members of staff.
Phil Plant, technical director at the 74-strong Express Circuits Group, has urged other innovative businesses to seek specialist advice to see if they qualify for research and development relief.
“A saving of £350,000 is a significant sum to any business however large or small,” he said.
“Although our previous accountant mentioned research and development relief they gave the impression it would create too much administrative work to be worthwhile making a claim. However, in our first meeting with Jeni we discussed our projects including plans to develop stretchable PCBs and she recommended making a claim.
“Jeni and her team assisted us in making the claims and walked us through the process. She assisted in the collation of information and made it all straight-forward. It certainly wasn’t onerous and time consuming for our company. I can honestly say that Baldwins made it very simple!
“I would definitely urge other companies who are also in research and development fields to see if they could benefit because it is a no-brainer.”
Jeni, Tax Director at Baldwins Accountants which has ten offices across the region, is convinced hundreds of businesses in the Midlands are unaware that they could be benefiting from claims and missing out on sizeable tax savings.
“When we held our initial meeting with Phil we immediately identified the research and development claim which has led to considerable tax savings,” she said.
“Following the first claim, and as part of our commitment to get to know our clients, we have identified further projects within other companies in the group which has led to additional tax savings.
“A startling number of businesses believe that progressing a research and development claim is time-consuming and complex and fail to realise that, in most cases, the value of relief available far outweighs the administrative input that is required.
“Many companies do not have a clear understanding as to what activities qualify for research and development and what costs are included to calculate the relief which is where we can help.
“With HM Revenue and Customs increasing the rate of relief to 225 per cent, coupled with other changes to the rules over recent years to encourage innovation and development within the UK, making claims is much easier to administrate.”