Author: dcconsult_admin

R&D Tax Relief has traditionally been misconceived with many companies believing that R&D relief is only for those who embark on blue sky projects. THIS IS NOT TRUE!

If you design or manufacture products, components or software, or have developed new techniques in the workplace for faster production / enhanced efficiency / improved quality, no matter what industry you operate in, you could be entitled to R&D Tax Relief.

Relief
If you do qualify for R&D Tax relief you could receive enhancement relief on your development expenditure of 225%, with the ability to reduce corporation tax payable or reclaim up to 11.5% of the enhanced expenditure in cash.

For example, assuming you spend £100,000 on development and make taxable profits:

Alternatively, if you are not yet making taxable profits:

About DC Consulting
The DC Consulting team consists of Chartered Accountants and Chartered Tax Advisers, who have developed a strong track record in successful R&D Tax Claims with the average Tax Credit back to clients in excess of £20,000, in addition to thousands of pounds being saved via reduction in Corporation Tax liabilities. If you would like to explore the opportunity for R&D relief or for further information contact: andrew.mccafferty@dcconsult.co.uk, john.craig@dcconsult.co.uk or colin.kennedy@dcconsult.co.uk.

DC Consulting have recently completed the successful sale of an Oil & Gas company, assisting with all aspects of the disposal and diligence process.

Do you want to access grant support of circa £10,000 per new head via Regional Selective Assistance? If your company fits with the above criteria, a Regional Selective Assistance grant against project costs may be available to your company; the average grant awarded over the 2 years to March 2013 has been circa £10,000 per head.

Scottish Enterprise currently operates the Regional Selective Assistance (“RSA”) Grant Scheme whereby companies looking to create new jobs and invest in capital expenditure to increase their revenues may be eligible for support.

The scheme is set to change in 2014; it is possible that companies who qualify for the current scheme will no longer be eligible to apply. Any companies applying for RSA grant support before the end of 2013 are expected to be assessed under the existing grant scheme.

DC Consulting maintains an excellent record with Scottish Enterprise and has an established track record in securing RSA Grants on be behalf of its clients.

To qualify, a project must meet all of the following criteria:

• Take place in Scotland within an assisted area
• Directly create or safeguard jobs;
• Not be offset by job losses elsewhere in the UK;
• Involve an element of capital investment e.g. Plant & Machinery or Equipment;
• Be financially viable;
• Be mainly funded from the private sector;
• Must be able to demonstrate that your project needs RSA to proceed as planned;
• Other funding options have been explored i.e. RSA Funding seen as a last resort

DC Consulting is delighted to be the conduit to a £2m investment into Calnex Solutions by the Scottish Loan Fund, which is managed by Maven Capital Partners; John Craig of DC Consulting has assisted Calnex Solutions since incorporation in all aspects of the company’s growth strategy, both in terms of fundraising and financial strategy.

Calnex, employing circa 50 people, has grown to be a leading provider of solutions for Ethernet testing including synchronisation. The business has established a blue-chip customer base, including developers of next generation smart devices such as Nokia and Samsung as well as global telecom companies such as Vodafone who deploy the technology on their networks.

In recent years, there has been an explosion in mobile data and many commentators expect, certainly in the near-term, the volume of traffic to double annually. Much of the traffic will be bandwidth-hungry video content, and one of the major challenges faced by service providers is scaling the so-called mobile backhaul element of their networks in a cost-effective manner so as to ensure that a reliable and efficient network service is maintained. To achieve this most operators are migrating to Ethernet for mobile backhaul, however, operators then need to ensure that base stations that receive mobile phone traffic are properly synchronised so as to avoid creating distorted signals and poor service quality.

Calnex has a clear growth strategy and vision for the future (which is reinforced by the aforementioned market pull) and the flexible funding package provided by Maven via the SLF will allow the company to deliver a next generation testing product, ensuring the business remains a key player in the $1.3 billion global Ethernet testing market.

Tommy Cook, CEO at Calnex, added “It is great to have secured the funding that will provide the support which will enable us to implement our development plans. We have a clear vision of our future business and the flexibility of the SLF funding package means we are able to achieve this in a timely manner thus ensuring we continue to serve our customers’ needs and remain at the forefront of market and technological developments.”