Funding your Invention: R & D Tax Credits

I am often asked about where to get funding for one's invention. I mention the usual such as triple F (friends, fools and family), business angels and venture capitalists but often overlook one of the most obvious which is R & D credits. This is a very generous deductible allowance against corporation tax which can actually be a cash rebate for companies that are not liable to pay corporation tax.

There are two schemes: one for small and medium enterprises which has existed since 2000 and the other for larger enterprises which has existed since 2002.  According to HMRC's Research and Development Tax Statistics  which was published on 15 Aug 2014 over 100,000 claims have been made for R & D tax relief since he scheme was launched in 2000 and some £9.5 million has been allowed or paid out in that time.

In R & D Tax Credit Statistics which I published in my Patent Box and R & D Credits blog on 25 Aug 2014 I compared the claims for R & D tax credits and the number of patent applications by region in 2013 and found a remarkable correlation.

R & D Tax Credit Claims and UK Patent Applications 2013

Region	Claims for R & D Credit	Patent Applications
South East	3,030	2,822
London	2,715	2,588
East	1,630	1,802
North West	1,595	1,259
West Midlands	1,280	1,180
South West	1,265	1,368
Yorkshire	1,065	984
East Midlands	1,020	742
Scotland	905	900
North East	545	314
Wales	425	539
Northern Ireland	345	236

Further information on R & D tax credits can be obtained from HMRC's website.  Also, I cover developments in tax law relating to IP in my Patent Box and R & D Tax Credit blog. Our chambers are almost unique in that our intellectual property specialists work under the same roof as Atlas Tax Chambers and share the same clerks. We can thus provide comprehensive IP and corporation tax advice to businesses that invest heavily in high technology. Should anyone wish to discuss this article or any of the topics referred to he or she should call us on 020 74404 5252 during office hours or contact our clerks through this form.

Patent Box Roadshow in London

On 4 May 2013 I referred to the patent box roadshow that is trundling round the country (see "Patent Box Roadshows").. The patent box is an important tax concession that which came into force on 1 April 2013 in order to encourage innovation in this country.

On 12 July 2013 the roadshow came to the Liverpool embassy in London and I reported the event in our IP London blog (see "London Patent Box Workshop" 16 July 2013 IP London). There were three speakers, Howard Veares, tax director at BDO, Michael Sandys, head of commercial at Broudie Jackson Canter and me. You can download copies of our slides and handouts from here.

One of the strengths of our chambers is that we are not only strong in IP (see "We can now field a cricket team" 19 July 2013) but also in tax as we share space and facilities with Atlas Tax Chambers. One of the members of that set is Anne Fairpo who is an authority in IP and taxation.  Atlas and the IP Group work closely together.

I have put together the resources of our two groups on the patent box plus some links to some other useful sites in a new blog on the Patent Box. The London event was so successful that we are holding another at the Liverpool embassy on 13 Sep. This time Anne Fairpo will be the star speaker.   Tickets are likely to go like hot cakes so if you want to attend give us a call on 020 7404 5252 or complete our contact form.