Nutissu’s CEO shares her experience of using Novel to make an R&D tax relief claim
Nutissu’s CEO Achala De Mel shares her experience of using Novel to make an R&D tax relief claim
When the prospect of making an R&D tax relief claim by herself felt daunting, Nutissu’s CEO, Achala De Mel, searched for a solution that provided support from consultants but also encouraged collaboration between herself and her team. As a result of her search she found Novel and shortly after going through the claim process, we sat down with Achala to discuss Nutissu and her experience using Novel.
The challenge – The founder was aware of the R&D tax scheme but found the application process daunting and wanted a solution that offered automation and consultant support.
The outcome – A successful claim and the continued use of Novel to improve collaboration on future R&D tax relief claims amongst colleagues, stakeholders and R&D consultants.
The impact – Being able to create their R&D tax relief claim through Novel allowed Nutissu to continue developing their biotechnology devices and hire more staff.
Nutissu is a biotechnology company that aims to develop innovative biomaterials and bioelectricity-based solutions, whilst leveraging digital health technology to address problems with the treatment of chronic wounds. They recently received an award to further develop their innovative E-Plaster technology from the Veteran’s Health Innovation Fund. You can learn more about how it works as MP Johnny Mercer visits their laboratory below.
On a Friday afternoon, amidst Achala’s busy schedule of running a start-up biotechnology firm we were fortunate enough to grab half an hour of her time to discuss her experience with Novel.
Without mincing words, we dove right in with the key question, was Achala aware of the R&D tax scheme prior to coming across Novel? “Yes, I was aware, and I had a read through to see what I could claim for, so I had a general idea. But in terms of submitting a claim, it was a rather daunting task. What Novel enabled us to do was to have the hand-holding element while going through the process of completing the claim, which I think you’re unique in providing?”
Whilst there are many pre-existing consultancies out there, very few provide a solution where they can collaborate with their clients through an application, and fewer still provide that solution to the client to allow them to track their R&D projects in real-time, as and when the activities occur. This, in turn, encourages collaboration between the various stakeholders involved in the claim process, such as subcontractors, accountants and R&D consultants. With Nutissu’s claim, we were able to support them as R&D consultants while also utilising Novel.
“Going through the process with Tom and Jon was incredibly useful because even though the platform is very intuitive and shows you what needs to be done step-wise, when I had questions, you guys were very supportive in helping me navigate them. I also think it makes sense that it’s not completely automated although maybe there is a clever way to do it.”
Finding the right balance between automation and expertise from the right people is always tricky. R&D consultants are inherently well versed in the more nuanced legislation and claiming restrictions, whilst the claimants themselves are closest to the project detail and technical work. This is one of the reasons why we’re continuing to build a platform that allows for collaboration and encourages the right expertise in the relevant places.
With the SME scheme rates due to decrease from April 2023, where we will see the enhanced deduction decrease from 130% to 86% and the credit rate decrease from 14.5% to 10%, many businesses are worried about what the future holds. Although there are other valuable government schemes and grants available, these are often project-specific and tied to funding one specific area of the business, R&D tax relief can be claimed across multiple projects, which can be necessary for businesses.
In Nutissu’s case, the grants are tied to particular projects. To quote Achala, “receiving an R&D tax credit really helps to supplement projects, plug the gaps and obtain raw consumables as well as to hire short-term assistants to get to the next milestone. So every little penny helps us move to the next stage” . By reducing the enhanced benefit of the SME R&D tax relief scheme, businesses will need to seek investment from other sources, which can be particularly difficult for early-stage companies that are still very much in the development stage of their product. “When it comes to investment, everyone wants a singing, dancing product, that is already generating revenue! I want to be able to do that but without cutting any corners so it requires a lot of R&D and funding”.
Government schemes, such as R&D tax relief, Innovate UK and others, have social and economic benefits for the UK. When we asked Achala what motivated her to start Nutissu, she highlighted how “there was an unmet need in addressing chronic wounds. I saw a gap in the market and having more than 10 years of experience after my PhD, I realised that I could combine my knowledge and experience, particularly in biomaterials, to address this issue.” Nutissu is now working on helping reduce the £8 billion burden spent by NHS on managing chronic wounds.
Having access to the R&D tax relief scheme played a crucial role in helping Nutissu innovate and address unmet needs in the market. Their case also demonstrated why some R&D tax relief claims require the help of R&D consultants in navigating the nuances of legislation and grant funding. While Novel aims to provide a robust claiming solution, we believe the need for collaboration with consultants will continue. If you want to learn more about how your business can use Novel, get in touch here.