1 / 36

Hello

Hello. The UK: A Great Place to Innovate. SEIS/EIS Gets things started. Patent Box Rewards Commercialisation. R&D Grants Pump Priming Innovation. R&D Tax Credits Rewarding Innovation. SEIS and EIS – Equity Funding. For early stage companies

mbaxter
Download Presentation

Hello

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hello

  2. The UK: A Great Place to Innovate SEIS/EIS Gets things started Patent Box Rewards Commercialisation R&D Grants Pump Priming Innovation R&D Tax Credits Rewarding Innovation

  3. SEIS and EIS – Equity Funding • For early stage companies • Offers 50% tax relief to investors who buy new shares in your company • Capital Gains Tax (CGT) exemption on gains from SEIS investment • Maximum of £150,000 through SEIS investments • For small, high-risk companies • Offers 30% tax relief to investors who buy new shares in your company • Raise up to £5 million each year and a maximum of £12 million in companies lifetime • Investment must be made within 7 years of companies first commercial sale

  4. An intro to the UK/EU Funding Landscape • SME Instrument • Fast-Track to Innovation (FTI) • Future and Emerging Technologies (FET) • Shift2Rail • Smart Grants (formally Open Grants) • Innovation Loans • ISCF (Industry Strategy Challenge Fund) • Themed Competitions • Involved with outside organisations to provide funding e.g. Network Rail • SBRI Competitions

  5. Target Areas for Grant Funding Innovate UK – Industrial Strategy Challenge Fund

  6. Innovate UK: Smart Grants: April 2019 R&D Funding for disruptive innovative projects in any industry sector Projects must demonstrate: Innovation leading to new product, process or services A strong and deliverable business plan Clear & anticipated growth impact leading to significant ROI Projects can focus on: Closing Date: 24th July 2019 Feasibility Studies (including market research) Industrial Research Experimental Development

  7. Innovate UK: Funding Rates 79% success rate 100% success rate Industrial research Market/fundamental research Applicant business size Experimental development Feasibility Studies 70% 45% Micro/small 70% 100% 60% 60% 35% 100% Medium 25% 50% 50% 100% Large Research and Development Funding 30th November 2017

  8. Funding Timeline e.g. Innovate UK – Smart Grants: April 2019

  9. Wider UK Funding • Research, Development & Technology Funding • 8 Challenge Statements • Complete a R&D Challenge Form • Invite to interview • Benefit: • Some cash • Access to market • Work alongside Network Rail • Access to test facilities • SBRI First of a Kind (FOAK) • Previous Rounds: • Round 1: Demonstrating tomorrow’s trains today • Round 2: Customer experience in stations & decarbonisation • Round 3: Resilience, freight, noise & environment • Competitions ran by Innovate UK

  10. Wider UK Funding • Shift2Rail Joint Undertaking (S2R JU) • 5 focus areas – • Cost-efficient and reliable trains • Advanced traffic management & control systems • Cost-efficient and reliable high capacity infrastructure • IT Solutions for Attractive Railway Services • Technologies for Sustainable & Attractive European Freight • Run via Horizon 2020 calls • Rail Safety and Standards Board Ltd • Data Sandbox+ • £650,000 available • To deliver innovative data-driven solutions to key operational performance challenges in the rail industry • Closing Date: 5th July & 2nd round due to open 2nd September

  11. Wider UK Funding Local Enterprise Partnership (LEP) Funding Open Call Innovation Focus Areas 1. Assistive technology for rail staff - innovative solutions to work in combination with existing railway security measures and the ‘See it, Say it, Sorted’ campaign to detect unusual behaviour. 2. Screening Train Carriages - There is a need for a device that is able to scan train carriages and determine if any foreign objects have been left behind.

  12. Grant Funding Top Tips Read and understand the competition criteria Attend briefing event and register interest Agree a costed and expanded plan ASAP Get partner commitment early Answer all questions and bullet points Leave plenty of time for writing, review and uploading

  13. TBAT Case Study Specialist business involved with the remote monitoring of bolted assets in rail infrastructure. • Industrial Research – remote-condition monitoring technology for voids, noise impact & switch movement at Switches & Crossings • Feasibility Study – using safety critical fastener management technology in energy & power generation industries • Development and demonstrator of ‘Smart Washer’ technology to alert for preventative maintenance at Switches & Crossings Grant Awarded from Innovate UK: £1.2 million Accelerating Innovation in Rail 3 Accelerating Innovation in Rail 5 First of a Kind (FOAK)

  14. What are R&D Tax Credits? The R&D tax credit scheme is a HMRC incentive designed to inspire innovation & increase spending on R&D activities by companies operating in the UK.

  15. The 2 different R&D Tax Credit Schemes • Less than 500 employees or less than €100 million turnover. • Benefit of £26 per £100 on R&D if profit making • Benefit of £33 per £100 on R&D if loss making • Claims can go back 2 full years • Over 500 employees or more than €100 million turnover. • No minimum R&D spend • No upper limits on claims • Benefit of £9.70 per £100 on R&D

  16. How does the SME scheme work? Or, Benefit of £5,200/R&D Costs of £20,000 = 26%

  17. R&D Tax Credits: The Timeline 31st Dec 16 31st Dec 17 31st Dec 18 31st Dec 19 Company tax year 2 Company tax year 1 Current company tax year Must be claimed by 31/12/19 Generates Tax Repayment or extended losses Must be claimed by anniversary of accounts submission to generate repayable credit 2 full company tax years plus current one Carry losses forward Revenue & Intangibles costs only

  18. R&D Tax Credits: Why Bother? Reviewing earlier years R&D activity, Uplift of R&D costs reduce profits in those years and create tax refund. Carry losses backwards Loss making company can claim up to 33p in the £1 TAX REBATE CASH BACK TAX REDUCTION EXTENDED LOSSES Uplift of R&D costs offset against company profits reducing tax payable – worth 25p in the £1 Uplift of R&D costs pushes company into loss, use to extend losses against future profitability – good for near to market R&D companies

  19. What is R&D for tax purposes? • Activities that seek to: • Achieve an advance in overall knowledge or capability in the field of science or technology • and • Resolve scientific or technical uncertainty

  20. R&D Tax Credits: Are we eligible? You are likely to be eligible to claim if you are working on:

  21. What is R&D for tax purposes? The Lab Coats Prototypes Test Rigs New Device New Process

  22. What is R&D for tax purposes? Customer Funded work First in Class R&D for Production issues Technical Process Enhancements Beta Trials Project Management Management Input to R&D Product Improvements Duplicating Existing Products in a new way Prototype Tooling The Lab Coats The Engineers Prototypes Test Rigs New Device New Process

  23. What is R&D for tax purposes? Customer Funded work First in Class R&D for Production issues Technical Process Enhancements Beta Trials Project Management Management Input to R&D Product Improvements Duplicating Existing Products in a new way Prototype Tooling The Marketers IP Processing Rent, Rates, Depreciation Concept and Idea Analysis Cosmetic and Aesthetic Work Marketing & Product Launch Costs Finessing Production Issues The Lab Coats The Engineers Prototypes Test Rigs New Device New Process

  24. Project Life Cycle Area under graph line represents proportion of total costs that are eligible for R&D Tax Purposes Roll-Out / Commercialisation Initial Technical and Commercial Research Cost Initial Prototyping and Technical Effort Core Development Effort Project Progression

  25. R&D Tax Credits: What can be claimed?

  26. R&D Tax Credits: Eligible Rail Activities

  27. R&D Tax Credits: IP Ownership You have completed R&D work for a client. To work out if you can claim, you need to answer 2 questions… SME Large What is the size of your client? You can claim R&D Tax Credits via RDEC Scheme! You Your Client Who owns the IP? You can claim R&D Tax Credits via SME Scheme! No claim to be made.

  28. Worked Example - SME

  29. R&D Tax Credits Top Tips Have you installed new production lines? Compliance with legislation can still lead to innovation Consider work you have completed for clients Not all accountants understand the subtleties of the scheme You can still claim R&D tax credits if your project was grant funded

  30. Case Studies: R&D Tax Credits

  31. Patent Box A reduction in Corporation Tax on profits from patented inventions Can reduce Corporation Tax to 10% Elect for Patent Box within 2 years of accounting period UK and EU Patent Office + other EU Economic Area Products and Processes that are patented A cash resourced company innovates and creates IP

  32. TBAT Connections We are proud members of and provide regular funding updates to:

  33. TBAT’s Success Our consultants work tirelessly to maintain our impressive success rates; allowing our clients to stay competitive in their sector and continue to innovate!! Sam Stephens | Director | 01332 819740 | info@tbat.co.uk

  34. Q&A

  35. Thank You

More Related