How to Get UK R&D Tax Relief with JunariCRM+
Fans of the Beatle’s George Harrison will perhaps recall the lyrics of his song “Taxman” which went something like “and my advice for those who’ve died, declare the pennies on your eyes, cause I’m the taxman”. Well, arguably HMRC doesn’t stoop quite as low as that even if Mr Harrison thought so – but corporation tax is a favourite exaction of theirs!
Poor Mr Tax Man! All our clients should take advantage of R&D Tax Relief…
Just like any sensible business person out there – you for instance – we are always looking for ways in which to minimise our business liabilities and in particular the tax obligation that the company shoulders. If we can take a £1 of our hard earned revenue and not pay tax on it, preferring to invest that £1 in our future growth then we want to hear about it.
Now before you go getting as hot under the collar as a Starbucks cappuccino, we’re not talking about diverting profits away from the UK to minimise corporation tax payments or any wannabe-murky accounting practice that would have us featured on Jimmy Carr’s best buddies list!
No, no, no. What we are referring to is how we take advantage of the fantastic tax relief that the UK government itself is offering to all companies that perform Research & Development activity on projects that they are working on.
Happily the UK Government recognises that the effort of “UK plc” doing lots of excellent R&D will improve the UK’s economy with cutting edge product/service delivery and so they reward any qualifying expenditure with an effective 45% tax relief on such qualifying R&D expenditure. This is fantastic news for us – our Research & Development work is a continuous cycle of effort that ensures we understand what is valued by our customers and future target markets and therefore what will sell. Our R&D focus enables us to flex and grow to remain effective and efficient – two core business tenets – and so we invest a considerable amount of time and money in this activity.
- For Small or Medium-sized Enterprise (SME) Companies, since 1 April 2012, the tax relief on allowable R&D costs is 225% that is, for each £100 of qualifying costs, your company has the profits on which Corporation Tax is paid, reduced by an additional £125 on top of the £100 spent.
- Effectively this increases a company’s Corporation Tax relief on such expenditure from 20% to 45%, and is hence a very generous HMRC incentive.
- Furthermore any “excess tax losses” created from such a claim can either be carried forward in the normal way for relief against future profits of the same trade, or “surrendered” for an cash rebate at a rate of 11%
Now obviously, this R&D tax relief has been around in the UK since the early noughties BUT the difference now is that the relief value is higher (see sidebar) AND that the definition of what constitutes R&D expenditure has been widened. So listen up! This is a critical point for you; because R&D isn’t just about white-coated boffins working out the new pharmaceutical drug or next generation jet-engine. Now it can include anything that a business does which helps it improve its own processes, effectiveness and efficiency meaning that profit-growth is more possible. Specifically if your business project seeks to achieve an advance in overall knowledge or capability through the resolution of a technological uncertainty then you should be thinking about applying for R&D Relief.
And one of the specific costs that qualify for the relief calculation is software – computer software used directly in the advancement of business knowledge and capability.
Keeping it simple: A JunariCRM+ Implementation = More Tax Relief Opportunities
In simple terms therefore the JunariCRM+ product’s implementation costs and elements of its ongoing support can all be tax relief efficient. Because at the heart of the technology-uncertainty issue is how businesses find a suitable system to help them resolve blocks to business growth and blocks to their knowledge of the business patterns and dynamics. The investment in terms of time and capital outlay in resolving these core business issues is one that Junari assist all our clients with when tailoring our JunariCRM+ product to their exact process and innovation requirements.
Several of our clients have taken the project cost relating to their JunariCRM+ implementations and made them into successful R&D Relief claims – meaning that the already impressive return on investment that JunariCRM+ is delivering to our clients’ top-line is further leveraged by potential tax enhancement savings. It seemed a natural progression therefore to shout a bit more about this benefit and make it more obvious to everyone.
“Everything should be made as simple as possible, but not tax.”
Apologies to Albert Einstein for corrupting his quotation there – but the point is valid. There’s not a lot in the world of corporate tax that is dead simple. So in order to take advantage of the still rather complex and obfuscating tax guidelines you’re going to need to employ an expert.
Here at Junari we’re very happy to recommend Chris Annis at LB Group Chartered Accountants in Ipswich who has worked with us on our last two financial year R&D submissions. Chris is a great guy – defined by his pragmatic and proactive approach to achieving every drop of legal-tax relief that the government system allows. So if you need any help or advice then Chris can be reached on 01473 359720 or email Ipswich@lbgroupltd.com.
And if you’re interested in how you can achieve powerful business growth into your business (whilst also having the satisfaction of paying less Corporation Tax) then you need to speak to us.
Contact us on firstname.lastname@example.org or +44 (0)1206 625225
In a series of occasional and ‘just-when-the-moment-grabs-us’ blogs we’ll be posting some articles that deal with the deeper side of being in business and featuring the thoughts and opinions of our team members. First up are my thoughts on the topic of “People-Management is just like Cattle-Herding. Discuss…..”
And my answer is an emphatic “No!” and now I’ll explain why…
“It’s not just petty and mean to treat employees like cattle, it’s also bad business. The best employees won’t stay in a broken culture where fear has replaced trust. Beaten-down and fearful employees can’t take care of customers, build great products or innovate their way out of a paper bag”. Liz Ryan, Human Workplace.
Well said Liz!
Good business is about good humanity
Being genuine and allowing the people that we employed – we chose them after all – to be equally as honest and authentic. It is important to allow fellow workers to bring their missions and visions into the workplace. If as leaders we are too draconian or rigid we miss out on possibilities that are innate within people. I trust the team implicitly to do the right-thing by our clients and therefore for the business. I have high standards and expectations and I think it is reasonable to be clear about these and for the acceptable (optimum) behaviour boundaries to be followed. I happen to love business numbers! They are what I use to reinforce efficient prioritisation. Numbers ground me & foster knowledge within the team regarding measurable targets and timescales.
I lead by example – demonstrating the behaviour that I believe to be valuable. As the old adage goes – actions speak louder than words. I work hard and my personal motto of “Ita Ut Fiat” (“so it becomes”) reminds me to watch my character; as it becomes my destiny.
I do not believe that I know it all and that I should shoulder all decisions and responsibilities! I am like everyone else; juggling my own foibles, trying to concentrate on my strengths and not let my weaknesses get in the way too much! I surround myself with passionate and skilful people who are open to working in collaboration. I encourage the team to push themselves hard, for stated purposes, and to be sensible but confident about the risks that this involves. My hope is to foster an environment where people feel able to innovate with no fear of come-back. Tough choices are of course part of being a business-owner and are never pleasant – but they are a good opportunity to reinforce the authenticity that the business embodies and in that way can, perversely, be a positive force just so long as it is done professionally, fairly and decently.
I am privileged to work with a joint-business owner who shares this ethos. He is a person of great veracity and who has been instrumental in helping me feel the most powerful and permitted I have ever been (in a career which has included senior management in several blue-chip corporates where I may have earned great money but in comparison I was powerless to affect major-change/improvement).
“Herding like cattle”? More like “Soaring like Birds”…!
So; what’s your preference?
Do you have a particular approach to managing people that you’d like to share with us? Get in touch or leave a comment below.
Contact us on email@example.com or +44 (0)1206 625225
Shortlisted for the Online Business Category
We’re celebrating here at Junari after we got the news that our CRM product JunariCRM+® has been chosen as a finalist in the Online Business Category for the Essex Digital Awards 2014!
This category celebrates “the outstanding achievements” of companies that do their business online and use their website as their “shop window” to promote themselves.
Furthermore TheMapp (http://themapp.co.uk/) who provide visual planning and collaboration tools and who are an associated company of Junari’s has also been selected as a finalist in the same category!
Steve Austin, our M.D commented “I’m thrilled that we’ve been included on the short list for this business award; we’ve put a lot of work into making our JunariCRM+® product a compelling business-growth enabler and it’s great when our product-quality and high standards of customer service and system tailor-ability are recognised. It’s a wonderful pat on the back for the whole team here and
For a full list of all the finalists in the category head over to the Essex Digital Awards website: essexdigitalawards.co.uk/finalists-announced-for-essex-digital-awards-2014/we’re looking forward to meeting all the other finalists at the award ceremony held in Billericay on 24th April”
Update: We handover the cheque…
Rachel & Steve, Junari present the donation to Melissa Collett, E.A.C.H
Today, 14th May, we visited the lovely fundraising team at E.A.C.H to handover our donation cheque and find out a little bit more about what the charity does. It was lovely to meet Melissa and hear about the fantastic hard-work they do helping children with life-threatening illnesses and their families. It is a pleasure to be doing our small part to help this very worthwhile cause.
And the winner is…..
27th April saw the Essex Digital Awards 2014 event in Billericay and we had a lovely time soaking up the South-Essex atmosphere and enjoying amongst other things the “The Big Breakfast’s” comedian Mike McClean’s comedy set whilst we nervously awaited the results for the category we were nominated for. Regrettably we didn’t get the top award – our heartfelt congratulations go to online jewellery business Love Lily Rose (lovelilyrose.co.uk).
BUT! Although we didn’t win, we are not disappointed because we do get to announce a winner of our OWN – and that is the winner of our charity-draw to receive our one off donation. So, with drums rolling in the background, the winner is our LinkedIn follower John McNeil from Itron who nominated East Anglian Children’s Hospices (E.A.C.H) as his charity of choice. Thank you John for your nomination and congratulations on being a winner this morning!
We found ourselves a consolation award!
(we did put it back after the photo honest!)
Finally, and importantly, we wanted to say a profound “Thank You” to all our new LinkedIn followers who took the time to write such lovely messages of congratulations and wishes of good luck. Reading through your comments and your explanations of why your chosen charity meant so much to you has been lovely. We really appreciate you doing that and we will definitely be thinking up new “excuses” to support charities in the future.
From the Junari Team – Thank You!
For those readers who aren’t familiar with what the charity-scheme was, this is the previous blog post which explains the background and what our donation scheme was about:
As you may have seen from our previous blog-post on the subject, the Junari team are thrilled to have had our JunariCRM+ software product shortlisted as a finalist in the On Line Business Category of the Essex Digital Awards 2014. We hope to be selected as Medal winners at the awards ceremony next week on 24th April in Billericay.
Having heard the happy news we did the usual whoops of merriment and high fives (we may even have indulged in a little David Brent style dancing – but that would be telling) and then, once we’d all calmed down a bit, we got to thinking that we should pass on some of our good-fortune and “pay-forward” our success.
So, we’d like you to think of your favourite charity!
Have you got a cause that you hold dear and for whom you know a bit of extra money would help? Then you could get them at least a £100 donation from us! All you have to do is:
- Go to the JunariCRM+ LinkedIn page and “Follow” us to qualify.
- Once you’ve clicked on the “follow” button simply leave us a comment on the page of your nominated charity’s name.
We will be doing the randomised draw on Friday 25th April to pick one lucky winner. We’ll let you know if your name was chosen and if it is your charity that will receive the donation. We’ll also post the winner and the chosen charity on our page.
Gold Boost! – just to add to the celebratory mood; if we are successful enough on the night to win the Gold Medal for our award category then we will boost the donation up to a total of £250!
So, please act – visit our JunariCRM+ LinkedIn page now (or before end of business on 24th April 2014) and click on “Follow” to join in with our celebration party and give your chosen charity the chance of receiving at least £100 courtesy of JunariCRM+
Will it be the JunariCRM+ team celebrating on the winners podium on 24th April? We hope so!
Contact us on firstname.lastname@example.org +44 (0)1206 625225
Get your glad-rags on – we’ve done it again!
It is with huge pleasure and great delight that we heard at the end of last week that we have been selected as a finalist for the prestigious Essex Business Excellence Awards 2014, Customer Care & Service award category.
This is a huge honour for us and means that we can once again break-out the tuxedos for the award ceremony night on Friday 26th September at Boreham House.
We had a lovely time meeting with the judges who visited our offices a few weeks ago so that they could meet the team and see for themselves what Junari’s customer service involves and how we manifest the main tenets of our customer care approach.
The whole team at Junari work extremely hard to ensure that all our clients, old and new receive the very best of customer service. Our work is a continuous cycle of improvement effort. We are committed to ensure that we understand what is valued by our customers and therefore what will provide real and lasting business benefit to them.
To be selected as a finalist for this category and be amongst the other business luminaries is a wonderful acknowledgement for us.
“Junari really impressed us with their ‘nothing is too much trouble’ attitude and their strong ethics, values and charitable spirit. They really go the extra mile to keep their customers happy”. Caroline Peters, Director, Bird Luckin Accountants.