ADVERTORIAL: This is how small business owners can get rewarded financially for innovative projects

Are you a small or medium enterprise and have developed an innovative product, service, or something new in your field?

Then you could be eligible for thousands of pounds in tax relief – even if your project has been unsuccessful.

When it comes to recognising innovation and entrepreneurship, research and development (R&D) independent tax consultancy, EY Breakthrough Incentives, believes Swansea is leading the way.

So much so, the firm which specialises in supporting SMEs accessing R&D tax relief now has a dedicated team to work alongside Welsh businesses.

Newly appointed associate director, Sadique Maskeen, said he is passionate about helping businesses understand and claim back “Cash for Innovation”.

To show its commitment to the region, the firm is sponsoring the Lifetime Achievement Award at Swansea Bay Business Awards 2021 at the Brangwyn Hall on Thursday, October 21.

Sadique, who has more than 25 years of experience in working for corporate organisations, answers the following questions about the meaning of R&D and the implications around tax relief.

What is the R&D tax regime? EY Breakthrough Incentives associate director Sadique Maskeen

It is a government incentive scheme that is designed to encourage companies to undertake research and development activities or R&D as it’s commonly known. It is a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing.

There are two different R&D tax schemes – the large company scheme and the SME scheme. The scheme a company is eligible to claim under will initially depend on its size, that is, whether it is an SME or a large company.

What qualifies as R&D?

There is a specific definition of R&D for tax purposes, which is often more far-reaching than most people expect it to be. The work that qualifies for R&D relief must be part of a specific project that aims to make an advance in science and technology and is relevant to your company’s trade – either an existing one or one that you intend to start following the results of the research and development.

To get R&D relief, you need to explain how a project:

Looked for an advance in science and technology Had to overcome uncertainty Tried to overcome this uncertainty Could not be easily worked out by a professional in the field

These projects may include research or development of a new process, product or service, or improving on an existing one.