Food and Beverages R&D Tax Relief

There is constant pressure for innovation in the food and beverage sector to be either healthier, cheaper, vegan, dairy-free, organic or to comply with ethical or sustainable methods of production. We may chuckle to ourselves as we see another milk alternative being introduced, or get disappointed when our favourite coffee shop doesn’t have the type of milk we like, without even considering the level of research and development that goes into bringing a milk alternative into the market. In this sector, it is estimated that research and development tax claims are made for only 1% of eligible expenditure, which is phenomenal considering the extent of qualifying R&D activity in the food and beverages sector.

Only 1% of all claims are made by the food and beverage sector, despite being always pushed to innovative by consumer trends and regulation

Do you have a qualifying R&D project? Check below.

R&D worthy activity doesnt only happen in a laboratory. From new products and flavours to changes in packaging and machinery, there is constant innovation in the food and beverage sector. The fact that only 1% of claims come from the food and beverage sector, highlights that some businesses may not realise the breadth of their R&D activity.

 

A food and beverage company may be driven to innovation by consumer trends, such as gluten-free alternatives. There are also manufacturing factors that are part of R&D activity, such as having to create more products or those with a longer shelf life, or using new materials to reduce costs. Other factors that push food and beverage companies to innovate could be regulatory changes or sustainability factors, where companies may look for greener alternatives or substitutes for ingredients. With the consumer needs in the food and beverage sector always changing, there is a high likelihood your business may qualify for R&D tax credit, which can act as a welcome source of extra funds.

 

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

 

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

 

 

The food and beverage sector is diverse and most projects come with their own set of challenges. Improving techniques, products, quality, performance, or creating greener solutions all count toward an R&D tax credits claim.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Techniques

– Are you developing new methods of processing larger quantities of product?

– Are you improving processes to reduce microbial contamination during manufacturing?

– Are you designing a solution to increase a products shelf life?

– Are you developing new technology or automation software to make your business more efficient, such as to manage distribution centers and warehouses?

Innovative Products

– Are you developing a raw material substitution?

– Are you improving the texture, stability, flavour or nutritional value of a food product?

– Are you reforming existing products using new or different raw materials?

– Are you eliminating allergens, preservatives or artificial components?

– Are you testing new prototypes or creating trials for upcoming products?

Sustainability Innovations

– Are you developing new techniques to reduce or eliminate waste during production?- 

– Are you developing new technology or methods to be more efficient in your water, fuel and energy consumption?

– Are you developing new environmentally friendly materials for packaging or packaging alternatives?

– Are you working on a way to reduce the environmental impact of fertiliser?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Pharmaceutical industry and R&D Tax Relief

At the heart of most projects in the pharmaceutical industry lies research and development. Yet, there is a false preconception that activities worthy of R&D tax relief are only done by drug development companies, even though there are many less obvious examples, such as suppliers of equipment, drug modification and specialist testing companies. As a sector that requires a substantial amount of investment at the beginning stages of any project, claiming pharmaceutical R&D tax relief could help alleviate some financial stress. Despite this, around 90% of eligible companies do not claim, partly thinking that they are not eligible, and the others struggling to understand how to correctly identify and attribute R&D activities for HMRC.

Only around 40% of qualifying companies pharmaceutical R&D tax relief. Are you part of the 60% not claiming?

Do you have a qualifying R&D project? Check below.

Between 2007 and 2016, the global pharmaceutical industry invested over $1.36 trillion in R&D, and forecasts predict that by 2022, global annual investment in R&D activity will be $181 billion.

 

There are a variety of activities that potentially qualify for pharmaceutical R&D tax relief, such as drug discovery, design of specialist equipment, manufacturing of drugs and their adaptations, testing, delivery, and packaging, to name a few. All throughout the life cycle of a drug, from development to commercialisation, there is the potential for a variety of companies to claim back some financial relief for the innovative contribution to the final product. Did you know that you can even claim relief on the money spent paying clinical trial volunteers?

 

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

 

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

 

Most pharmaceutical projects involve some aspect of innovative R&D activity from researching new compounds to making certain methods or types of drugs more accessible to different people, there is a lot of scope for innovative r&d work in the pharmaceutical business.

New software, innovative ways of storage, advances in drug delivery and clinical trials, can all count towards an r&d tax credit claim no matter whether they have been successful or not.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Eligible Activities

– R&D of raw materials for drug production, methods of analysis and development of research software and development processes..

– Manufacturing improvements, such as installing new or modernising existing facilities to ensure a certain quality of product.

– Have you developed a more sustainable way of managing your wastage?

– Are you doing innovative research to solve a problem that will advance science?

– Are you thinking outside the box by tackling sustainability issues, such as using recyclable materials, reducing waste from contamination or the amount of materials you use?

Drug Development

– Are you working on discovering new compounds that can be used for a medication?

– Are you developing new materials and compounds?

– Have you carried out phases 1,2, and 3 of clinical trials?

– Have you done test batch production and production processes for evaluation?

– Are you a specialist drug testing company that creates bespoke tests or clinical trials to analyse the effectiveness of a new drug?

– Are you a supplier of specialist medical equipment?

Innovative Techniques

– Do you create variations of existing drugs where the method of delivery is adapted, such as making medication child friendly?

– Do you adapt existing drugs for the wider market, such as vegetarian and vegan substitutes.

– Are you developing new types of packaging, such as eco friendly packaging or specialist child-resistant packaging?

– Are you adapting the size and taste of a drug?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Biotech and R&D Tax Relief

Biotech is at the heart of the UK’s thriving and globally recognised leadership position in the life sciences. It is at the cutting edge of creating products that cure disease, feed the hungry, reduce our environmental footprint and fuel the world with cleaner energy. One of the reasons the UK has secured its leadership position is through their current research and development tax incentives system, that rewards companies investing in innovation.

While the Government is pushing money into R&D, Biotech firms need to take advantage of the benefits

Do you have a qualifying R&D project? Check below.

With a name like biotech, you would expect the companies to satisfy the research and development tax credits requirement of resolving a scientific or technological uncertainty, yet with HMRC disputing a record number of claims it is important to understand how to accurately present your R&D activities.

 

Biotech companies are continuously undertaking qualifying R&D activities that are designed to solve some of the greatest challenges facing our society. However, because the R&D in the biotech industry is unique, it requires a R&D specialist to be able to present it in a way that HMRC will understand and grant tax relief. At novel, we have R&D specialists who know how to present biotech activities to HMRC in a way that satisfies all reporting requirements whilst maximising the value of the claim.

 

With biotech research, testing and development requires a substantial amount of funding and a number of years, so it is crucial for companies to take advantage of the R&D tax relief scheme to ensure they can continue developing products, and are given the time to grow into profitable, innovative companies.

 

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

 

 

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

 

Most Biotech projects come with its own set of challenges. If you are creating new products, organisms, technologies and ways to solve a problem that haven’t been done before can all count toward an R&D tax credits claim.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Technologies

– Are you developing a technology that can improve the extraction of a product from its environment to be used as a biofuel, such as ethanol?

– Are you developing a technology that can extract a product or material from the environment to reduce pollution?

– Are you working on zero waste technology?

– Are you developing new medical devices, compounds or medicines?

– Are you creating algorithms and software that can analyse Biotech data?

– Are you training AI to be used for Biotech?

– Are you developing nanotechnology?

Innovative Products

– Are you developing biomining bacteria that is capable of surviving in particular environments?

– Are you developing biodegradable products to be used in medicine, food, fuel etc?

– Are you developing a new type of fungicide that protects agriculture crops?

– Are you creating a new type of fungicide that protects agricultural crops?

– Are you creating bio alternatives to traditional packaging?

– Are you creating new biomaterials to support different market sectors?

Innovative Processes

– Are you working on a way to find environmentally friendly fuel sources?

– Are you genetically modifying crops to support, improve or grow agricultural productivity?

– Are you developing or improving existing genetic modifications, tools and techniques?

– Are you working on targeted immunotherapies?

– Are you trying to improve a product by increasing its shelf life?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Software, Information and R&D Tax Relief

Research and development in software and information technology (IT) involves new ways of solving IT related problems, improving processes and developing software. Did you know that the advances made in this sector are the key drivers of innovation and new product development across a wide range of other industries? However, the fast-paced and diverse range of claims of this sector meant that in 2018, HMRC issued new guidance in regards to claiming the R&D tax relief on software development. Unfortunately, this made it difficult for companies to successfully claim tax relief, but we keep abreast of all guidance and legislative changes to make sure the claims we do for our clients are successful.

The beauty of software and IT is that the advances made in this sector enable innovation in all other fields

Do you have a qualifying R&D project? Check below.

Software and it has been one of the most challenging areas for HMRC R&D staff to deal with, especially considering that more than 65% of all R&D tax claims are from this sector with an average value of 65,199. Therefore, although there are many opportunities to claim R&D tax relief, HMRC scrutinises this sectors claims more closely than others, and has hired their own it specialists.

 

However, this should not discourage businesses from claiming, as most are undertaking R&D-worthy work on a daily basis. Instead, its best to use R&D tax consultants who specialise in software to reduce the risk of an HMRC enquiry. We at novel have been both the advisor and the claimant when it comes to R&D tax relief, which gives us a very detailed understanding of how to make the most of the R&D claim for a software project.

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

 

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

 

Most software and IT projects involve some aspect of innovative r&d activity. The success of your claim relies on the objective of your project to go beyond routine analysis or adaption of existing products, software or internal management systems. The types of companies that can claim r&d tax relief vary. For example, software development agencies, in-house software developers or saas businesses can all qualify.

 

New software, innovative ways of storage, extended functionality, advances in ai, automation, robotics and more, can all count toward a R&D tax credits claim no matter whether they have been successful or not.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Software

– Have you created a software that increases the performance of other technology?
– Have you built a software that integrates third party systems?
– Have you developed new data analytics tools?
– Have you developed innovative software that captures, protects and encrypts data?
– Are you creating new wearable tech?

Innovative Activities

– Have you been working on developing a gaming engine to run new video games?
– Have you been training your staff to be able to carry out specific R&D activities?
– Have you been researching and identifying uncertainties in the sector?
– Are you undertaking feasibility studies to back up your R&D project?
– Are you training an AI data/image processing tool?

System Improvements

– Have you created technology that extends the functionality of software programs or an operating system?
– Are you significantly improving cloud software to be used commercially?
– Are you developing a CRM system that requires technological advancements?
– Are you changing or modifying an existing product, process or service?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Insurtech and R&D Tax Relief

In any sector, you can find an insurance policy. In the past, the insurance sector struggled to qualify for research and development tax relief. However, the development of modern technology and its application in the insurance sphere gave rise to Insurtech, which now enjoys a lean digital operational model, and thus has become a strong candidate for the R&D tax credits scheme.

As Insurtech businesses are enhancing the customer experience, they are continually creating R&D worthy innovation

Do you have a qualifying R&D project? Check below.

Insurtech brought innovative offerings that have helped the insurance industry reconnect with their customers. By leveraging emerging technology, such as artificial intelligence, machine learning, and advanced analytics, Insurtech is able to drive exponential innovation in this sector.

 

Although the industry is still in its infancy, the uk is already considered the world capital for Insurtech and there is more funding available through the R&D tax relief scheme. With most Insurtech products relying on proprietary technology, there is a high likelihood that your business may qualify for R&D tax credits, helping to fund your business.

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

Insurtech brought innovative offerings that have helped the insurance industry reconnect with their customers. By leveraging emerging technology, such as artificial intelligence, machine learning, and advanced analytics, Insurtech is able to drive exponential innovation in this sector.

 

Although the industry is still in its infancy, the UK is already considered the world capital for Insurtech and there is more funding available through the r&d tax relief scheme. With most Insurtech products relying on proprietary technology, there is a high likelihood that your business may qualify for R&D tax credits, helping to fund your business.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Software

– Have you created a software that increases the performance of other technology out there?
– Have you built a software that integrates third party systems?
– Have you developed new data analytics tools?
– Have you created software that incorporates blockchain, in a new way?
– Have you developed new encryption and protection software for our platform that wasnt available before?

Innovative Products

– Have you created an app that provides robo-advice through a digital customer interface?
– Do you have a product that sells insurance in an innovative way that has not been done before?
– Are you creating a product that is fully automated that has not been available before?

System Improvements

– Have you developed a new machine-learning technique to process data or to personalise products?
– Have you made innovative advances in AI That add to the insurtech sector as a whole?
– Have you created technology that improves and personalises customer service?
– Have you developed advanced analytics that will enhance the availability of insurance?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Fintech and R&D Tax Relief

The past few years has seen the financial services sector exploding on the scene with incredible technological innovations. The scope and speed of the evolution in this sector has been astonishing and has given rise to what is now known as Fintech. Yet, despite Fintechs disruptive and innovative nature in the financial services sector, it does not even make the top 5 of the sectors that are claiming r&d tax relief. Why?

Fintech includes financial education, retail banking, investment platforms, payment systems and cryptocurrencies

Do you have a qualifying R&D project? Check below.

When it comes to Fintech, R&D worthy activity is often undertaken on a daily basis. A sector that prides itself on security and data protection requires heavy investment in infrastructure to support it, such as transaction encryption, regulatory compliance software, authentication software, fraud detection software and the likes.

 

There is qualifying R&D activity often taking place in the Fintech industry. For example, how you comply with financial regulations, whether you are creating competing software, or creating technology that protects the assets of your customers, may all be subject to R&D tax credit.

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

Most Fintech projects involve some aspect of innovative research and development activity, the costs of which will likely be eligible for R&D tax credits. Although in many other sectors it is possible to show a tangible product as the output of your R&D activity, most fintech claims require a different approach when it comes to filing for research and development tax credit.

New software, innovative ways of storage, advances in ai and calculation engines, innovative CRM and more, can all count towards a R&D tax credit claim, whether they have been successful or not.

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Software

– Have you created a software that increases the performance of other technology out there?
– Have you built a software that integrates third party systems?
– Have you developed new data analytics tools?
– Have you developed software that promotes cybersecurity measures?
– Have you developed software for a new digital wallet, payment processor or online trading platform?

Innovative Products

– Have you created a new banking system?
– Have you created a new digital currency?
– Have you created a new app in the financial sector, such as a budgeting app?
– Have you developed a product that can read digital banking data?
– Have you developed a new money management tool?

System Improvements

– Have you developed technology that enhances security?
– Have you developed new ways to encrypt data?
– Have you developed trading algorithms?
– Have you built an ai algorithm that automates certain tasks?
– Are you working on any proprietary technology that will improve functionality in the financial sector?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Manufacturing and R&D Tax Relief

Innovation in the manufacturing sector allows companies to address the changing consumer needs and industry standards. If your company recently introduced new or improved products, or enhanced manufacturing processes, you may benefit from research and development tax relief. Manufacturers are leading the way when it comes to leveraging tax relief. The recently published statistics by HMRC reveal that manufacturers are one of the main sectors claiming R&D tax relief. Despite this, the average claim value is one of the lowest of all sectors, highlighting a possible issue with some companies under claiming.

25% of all claims are made by manufacturing firms, yet the average claim value is one of the lowest of all sectors

Do you have a qualifying R&D project? Check below.

No two manufacturing industries are exactly alike; some are more physically labour intensive, others more knowledge-intensive. To some, proximity to customers is essential, whereas others rely heavily on transport. One possible reason for manufacturers under claiming could be this misunderstanding of the different types of projects that qualify. From the initial designs to the final project, manufacturers may be facing challenges at every stage of the manufacturing process, all of which can qualify for r&d tax credits.

 

Adapting to change in legislations, new chemicals, health and safety concerns, and different techniques, you may have been undertaking valuable, qualifying r&d work without realising it! As the manufacturing market gets tougher and pressure from new entrants grows, its important for companies to utilise the valuable r&d tax credit scheme. It can help boost businesses and also acts as a reward for the innovation that is done.

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

Learn More

What qualifies?

 

The manufacturing sector is diverse and most manufacturing projects come with their own set of challenges. Improving functionality, reliability, quality, performance, materials or greener solutions all count toward an R&D tax credits claim.

 

See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Techniques

– Are you developing innovative ways of re-using materials?

– Are you working on prototyping and three-dimensional modelling?

– Are you working on a more cost effective operational model?

– Are you working on an operation model that is driven by sustainability?

– Are you creating robots that can work alongside humans during production?

– Have you created techniques that improve the workflow and production processes of a company?

Innovative Materials

– Are you creating new or alternative materials to replace or improve existing materials?

– Are you creating new materials to meet new regulatory requirements?

– Are you working on eco solutions, such as alternatives to traditional plastic packaging?

– Are you designing and testing new prototypes?

System Improvements

– Are you using automation to improve manufacturing processes?
– Are you working on ways to integrate new technology with old systems to improve manufacturing processes?
– Are you developing virtual or mixed reality software?
– Do you use digital modelling to help design factory layouts or to maximise space efficiency?
– Have you created innovative software that tackles manufacturers problems, such as inventory management?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Construction and R&D Tax Relief

A sector built on innovation that only claims 3% of the total research and development tax relief across all companies, despite employing 10% of all jobs in the uk. The construction industry is currently struggling with rising material and labor costs, increased competition and shrinking profit margins as well as stagnant productivity levels. With R&D tax relief, your business will have extra capital to attract better talent, inspire employees, take on greater projects that may involve more risk and experiment with new technological solutions. The more your business spends on qualifying R&D, the more you can claim back.

Construction sector often misses out on R&D tax relief, despite striving for innovation

Do you have a qualifying R&D project? Check below.

People in the construction sector often don’t realise that they are doing work that fits the Government’s definition of research and development. Instead, they simply call it “problem solving”.

 

However, if we considered all the aspects that fall under construction, from engineering to materials to overcoming planning and conservation issues, we begin to realise the extent of R&D work that actually happens. This coupled with the fact that typically ROI for construction project occur long after the project has begun means that R&D tax credit can be a very valuable source of funding throughout the project’s lifecycle.

 

Despite this, the construction sector claims 11% less than the average SME, despite their high operating costs. There are many reasons for that, but a big one is the belief that they do not partake in any R&D qualifying activity.

 

What is R&D tax credit?

 

The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.

 

What qualifies as innovation?

 

For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

 

Learn More

What qualifies?

In construction, each projects comes with its own set of challenges and how you deal with them may potentially save you money, instead of costing you money. New materials, processes, technologies and approaches can count toward an R&D tax credits claim.


See whether your company projects qualify for R&D tax relief

 

R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Techniques

– Are you building with acoustics in mind?

– Do you have a unique energy saving method?

– Have you done a bespoke design with unpredictable obstacles?

– Do you create or improve software to aid the construction process?

– Are you developing new ‘green’ solutions in your business, such as low-carbon technologies and energy efficient installation?

– Are you developing techniques that help protect building from natural disasters that haven’t been done before?

Innovative Materials

– Are you working on a new prototype for a material? 

– Are you developing new materials?

– Are you using an innovative way and repurposing old materials to solve a problem?

– Did you create site-specific material to fit within the new environment?

– Have you developed or improved technology within the construction sphere?

Overcoming Site Issues

– Was there contamination on site that you dealt with, strategically? 

– Did you develop new equipment to help you carry out your construction project?

– Have you created innovative ways to keep your workers safe, such as new protective gear, automation etc?

– Are you developing new ways for water management not done before?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.

Connecting Xero to Novel

Step 1

Navigate to your Novel organisation page and select the Apps tab at the bottom of the sidebar. When on the Apps page, you can connect your organisation to Xero.

Step 2

Selecting Connect to Xero will redirect you to Xero’s website which will list the organisations within your Xero account. From here you will be able to authorise Novel access to an organisation of your choice and see what permissions Novel is asking for.

Step 3

If you only have a single company within your Xero account, it will automatically be added to your chosen Organisation in Novel. If you have authorised multiple companies within your Xero account, you will be presented with a screen to choose which company you would like to connect to your Organisation in Novel. This area will display the company name, registration number and is searchable.

Step 4

Once connected the Apps page provides you with the details of the Xero company you have added. Here you will also have the option to remove your access, or if you are the admin of the Organisation in Novel, you can also remove the connection between your Novel Organisation and the Xero company. This page will display the name and registration number of the connected organisation and will also detail the Xero ID for that organisation.

xero_novel_integration

Step 5 – Xero connection management

Since you may have multiple Organisations within Novel it may get a bit confusing as to the connections that you have made or you may forget over time. We have added all current connections to a centralised panel in your profile section, which can be accessed via name in the top right-hand corner. Here you can monitor which authorisations you have made and also remove or disconnect any authorisations between Xero and Novel that you no longer require.

Step 6 – Xero use within Novel

Now that you have connected Novel and Xero, you can simplify the inclusion of your costs for your R&D tax relief claim.

When in the Financials sections of an organisation you will be able to add costs to your claim to the following R&D tax relief cost categories:

  • Subcontractors
  • Externally Provided Workers
  • Consumables
  • Software Costs
  • Clinical Trial Volunteers

When you click to import costs from Xero you will be presented with all costs in a claim period that are allowable for R&D, these are:

  • Direct Costs
  • Overheads 
  • Expenses

Your first import may take a little while, please allow a few minutes for this, but when it’s complete you will be presented with a table of these costs.

You will see this loading screen whilst waiting for costs to be imported.

These costs can be filtered by the Account type. Select the costs you wish to import and then these will appear imported into your claim. Complete the missing data required for an R&D claim and then save, the costs will be shown with a Xero badge so you will know if something is imported or added manually to a claim, and from where.

As you are adding costs to your claim throughout the period you will be able to resync the data with Xero to import any new data into Novel. This process will be much quicker than your first import.

An empty Costs table detailing that you can import costs from Xero
Novel, R&D tax relief, biotech, case study

Biotech firm uses Novel’s educational content to write their first R&D tax relief claim in-house and save money

Biotech firm director shares how he leveraged Novel’s educational content to help his team write their first R&D tax relief claim in-house and save money

With R&D tax relief, companies can save up to 33% on their taxes but what does it take? The biggest reason why businesses do not try to file R&D tax relief claims themselves and, instead, hire a specialist agent is because of their lack of knowledge, experience and perceived difficulty. Novel aims to tackle this barrier.

When Lee Sacker, the director of Evergreen Technologies, needed to collaborate with his team to prepare their first R&D tax relief claim, he turned to Novel. Read the case study below where he shares his experience using Novel, some challenges he faced and advice on how to successfully navigate this process.

The challenge Help Evergreen write a compliant research and development tax relief claim without prior experience and provide a place where multiple users can collaborate. 

The outcome – A centralised place for collaboration and record keeping for their R&D projects going forward and a successfully submitted R&D tax relief claim.

The impact – The outcome will help support Evergreen’s operations for on going R&D work and ensure that the process is recorded with maximum efficiency for strong future tax relief claims.

biotech,
tax relife

As Lee dials in from Europe with a tan that leaves us pale Londoners a little jealous, we begin tackling the big issue of what it takes to write a technical narrative for a research and development tax relief claim in the field of biotechnology. “I am someone who looks for automation. For things to be as slick and quick as possible and during my search, Novel came up,” says Lee, while Sanela (who is responsible for our marketing) flashes a cheeky smile from across the screen.

The scientific nature of Evergreen’s project meant that they had to work alongside their subcontractor when writing the claim, and, fortunately, “the collaboration aspect of Novel was really, really good”. However, Lee ran into some unexpected problems when trying to get the team to use Novel.

As someone who has heard of and completed R&D tax relief claims before, Lee was quick to understand and was on board to use Novel, but not all of his colleagues shared his enthusiasm for this type of automation. As an entrepreneur and technology business investor with a long history in software development, Lee’s perspective and experience allowed him to successfully introduce this process to some reluctant parties. “I’m massively into these sorts of tools so it’s easy for me, but someone else is just so cautious,” describes Lee. So he found himself explaining that, “this is here to help you, and to make the process easier, and cheaper for the company, it’s not here to pin you against the wall”.

“the collaboration aspect of Novel was really, really good.”

Doing an R&D claim yourself for the first time can be worrying because the tax system is complicated and full of nuances. However, the goal of Novel is to prove that despite the difficult nature of R&D tax reliefs, it can be codified, and, therefore, you can do it yourself. “I totally agree with you,” says Lee, “sometimes people think that they better use company X because they are specialists and they are charging all this money so they must be good but in reality when done with proper education, R&D claims can are pretty straightforward.”

Intriguingly, when building Novel, we recognised that giving users the confidence that they can write their R&D tax relief claim would be a challenge. Lee echoed our thoughts when he started discussing how “some people were worried about writing something wrong”. “I had to make it quite clear to them that this is a collaborative tool, which allows us to get the reports right.”

“this is here to help you, and to make the process easer, and cheaper for the company….”

Speaking of reports, we took this opportunity to ask Lee about his opinion on the fact that we don’t charge our users to download their report, and,  instead, give them the flexibility to amend them as many times as necessary. “I think this is valuable and also that Novel doesn’t send it straight to HMRC”, Lee adds. “I could explain to the team that it’s not like you press a button and it goes directly to them. No, you get a report, if you don’t like the look of it, then you press again and get another report until everyone is happy. Only then does it get submitted with the accountants”. 

Lee continues that another point of contention was his team asking, “why are we doing this and that we don’t need to write any reports”, in the first place. Although businesses can claim R&D tax relief without any supporting documentation by simply writing down the R&D expenditure number on the CT Return, but “for me”, starts Lee, “I believe in good preparation and forward thinking, therefore even if you don’t need to submit your reports there and then, it’s far more beneficial and easier to create them as you go while it is fresh in your mind rather than waiting a few years down the line for an enquiry.  So you are always a step ahead”.

To add to the point above, there appears to be a misconception amongst claimants who think that once the claim is paid out, it’s finalised. Whereas, many don’t realise that HMRC can go back and open an enquiry on your R&D tax relief claim, and therefore you want to have evidence of all the work along the way. “Exactly. The Evergreen projects are only a year old and already it’s difficult to recall some things we did, imagine trying to do this five years later. And what was good is even when we paused for that brief moment, we were always able to go back to Novel, and it’s all there so you can continue where you left off. That works brilliantly.”

“…we were always able to go back to Novel, and it’s all there so you can continue where you left off. That works brilliantly.”

And on that positive note, we got ready to say our goodbyes but before we left, we asked Lee’s advice on what we can do better, his response was “like a lot of these things it has a lot to do with education. You have to educate people to understand the what and the why”. We couldn’t agree more with Lee, and have begun working on some exciting plans for Novel in terms of education, so stay tuned, sign up to the platform or to our newsletter and learn more.