No individual, business or organisation in the world has been left untouched by Covid-19 and with many businesses on their knees and not knowing where to turn, it has been a tumultuous year. However, a survey recently carried out by Santander found that of all the UK, those in Scotland are the most positive about bouncing back, with 74% of participants citing that they are now confident of growth within the next three years. This figure is up from just under 24% in autumn 2020.
Access2Funding has reason to be positive too. After launching the first branch in Scotland in March 2020, it has gone from strength-to-strength and grown exponentially. With a team of experts, from a tax specialist to expert writers and a female-strong team of leaders at the helm, collectively the Scottish arm of Access2Funding has successfully claimed more than £4.5m back in research and development (R&D) tax credits for businesses in one year alone.
What are R&D tax credits?
In a nutshell, the R&D Tax Relief Scheme is a government initiative run via HMRC, created to reward and encourage UK companies to invest in innovation.
What does this have to do with the energy industry?
There are ample prospects for businesses within the energy industry to claim back R&D tax credits. Activities that make a business eligible are carried out on a daily basis by operators, vessel contractors, drilling companies, engineering consultancies and throughout the supply chain.
Aberdeen-based business development executive and resident energy expert Ryan Gordon, of Access2Funding, explains: “There is an abundance of avenues to explore in order to claim money back in the sector, particularly as decommissioning has been a hot topic over the last few years; there’s now a drive towards net zero via the energy transition. Businesses are constantly innovating to improve their products, service and solutions in order to make their solution safer, quicker and more cost effective, not to mention to reduce environmental impact.
“Advancements in existing technology in the likes of pipeline bundles, drilling solutions, well P&A, removal and disposal of old assets, as well as subsea infrastructure are often eligible for R&D tax credits. It’s also worth mentioning that many oil and gas businesses are moving through the energy transition and have a lot of fantastic ideas that could be adapted to suit the renewable industry. If your business is involved in any of these areas, it’s definitely worth having a chat with us.”
Access2Funding’s regional R&D manager for Scotland, Suzy Carter, recently processed a large R&D claim for Aberdeen-based investors Garrick Group. With her assistance, they claimed a six-figure R&D tax credit, relating to activity undertaken at an oil and gas service company within the group’s portfolio.
Co-founder of Garrick Group, Douglas Garrick, said: “Suzy and her team of experts at Access2Funding were helpful and knowledgeable at every step of the way, resulting in a quick and easy process.”
Myth busting
Understandably, with so many success stories and large sums of money involved, apprehension is a common reaction to being told you may be entitled to “free money” from HMRC. Some common misconceptions can include:
- “It’s just another PPI” – not true. For years UK residents were bombarded with PPI messages but rest assured, the PPI deadline for claiming was August 2019 and R&D has been running since 2000 and is still a high priority in the Budget.
- “It’s better to claim through my accountant” – accountants are brilliant. As an R&D specialist, Access2Funding works alongside accountants which means the team could assist in claiming back more money than other providers.
- “It must be a scam” – again, this is not true. R&D tax credits is a government initiative to reward businesses that invest in innovation.
- “There’s probably no R&D in my business” – you’d be surprised. Access2Funding has successfully helped a range of businesses, including construction, manufacturing, food production, hospitality, plumbing, joinery, electrical engineering, breweries, architectural design, printing and signage, to name just a few.
- “The research didn’t work out so I won’t be able to claim” – not true. The government rewards those who make the effort to invest even if it didn’t pan out as hoped.
- “I’ve already made a claim so I won’t be eligible” – Access2Funding offers a free review service where the claim is assessed and finds any extra expenditure that may have been missed previously.
Will I be eligible?
You may well be. To be eligible to claim R&D tax credits, businesses must be UK registered and liable to pay corporation tax. SMEs must have fewer than 500 employees and either less than €100m of turnover or €86m on the balance sheet (R&D is assessed in Euros rather than GBP as it was written by the European Commission but is not linked to EU funding). Large companies and those SMEs who have received grants or subsidies towards their R&D projects or who are subcontracted by large companies to undertake R&D activities can claim relief under the RDEC scheme.
Talk to Suzy Carter about your eligibility on 0333 990 0125, s.carter@access2funding.co.uk
To find out more, register for Access2Funding’s webinar exclusively for Scotland on 1 April, where the team will be answering questions on all things R&D and hidden finance for businesses.