Are you eligible for tax relief for your research and development into green technologies?  Sustainable Footprints, together with their partner, R&D Tax North West, are keen to ensure that businesses across the UK are aware of this benefit and take advantage of the opportunity to claim back up to 24% of their eligible spend on research and development of green technologies.

The UK Government, in its recent Research and Development (R&D) Roadmap, has pledged its support for innovation and has recognised the contribution that this can make to the UK economy.

Companies working in ‘green tech’ and looking, either to adapt their business to reduce their own environmental impact or to develop solutions to wider environmental issues, could be eligible for tax relief on eligible research and development projects.  This is available at two rates, depending upon the size of the company.  SMEs can access relief worth around 24% of the eligible R&D spend whereas large companies are able to claim Research and Development Expenditure Credits (RDEC), net of corporation tax, which is worth around 10% of the eligible R&D spend.

Nick Biden, Managing Director of R & D Tax North West Ltd states, “Many companies, wrongly, assume that what they do isn’t R&D. The definition is much broader than many realise and extends beyond product development or improvement to encompass areas such as adapting to changes driven by regulatory requirements, competition or internal ethics. This could include sustainable technologies such as renewable electricity generation and energy efficiency; development of alternative materials such as recyclable or plant derived plastics; improvement of reuse potential for existing materials; or making existing products more sustainable.”

An example could be a company which seeks to develop more sustainable products or processes that offer the same, or even better, performance than current products could find that they are presented with technological challenges that need to be overcome. This could be the trigger for a qualifying R&D project.

Finding new applications for existing technology could also qualify for tax relief such as the integration of existing renewable technologies to provide a holistic distributed generation capability that reduces the reliance on importing electricity. The building blocks may already exist but how you put them together to achieve the performance may present a technological challenge.

Process development, for example, any work done to improve the process efficiency to reduce scrap rates, wastage, water or fuel consumption in their production process can also be eligible for R & D tax relief.

The tax relief available is significant, offering a corporation tax saving of between 10% – 25% of qualifying costs for profit making companies. These include staff costs, consumables and certain software used in the R&D project, amongst other items. Loss making companies may opt to take the relief as a payable tax credit which can be helpful for start-ups or where the business isn’t cash rich.

We will be partnering with R&D Tax Northwest to deliver a short webinar on green tech R&D tax rebate on Thursday 13 May at 1 p.m., visit www.sustainablefootprints.co.uk/event-calendar or contact info@sustainablefootprints.co.uk to book your free place now.

To find out more about tax relief for ‘green tech’ research and development, visit:  https://rd-tax-expert.co.uk or contact: enquiries@rdtaxnorthwest.co.uk  

Hamza Sadiq, one of Sustainable Footprints’ consultants, has recently completed his master’s degree at the University of Sussex, achieving a MSc with a distinction in  Engineering Business Management.

For his MSc Hamza selected and persevered through projects such as a cost-benefit analysis of CO₂ emissions reduction technologies to continue his passion for the positive impact technology can have within the business and sustainability sector.

Hamza said, “I selected these projects because they resonated with my own interests and perfectly correlated with a lot of the project work I was supporting Sustainable Footprints clients with.

“Choosing to look into carbon emission reduction and sustainable technologies not only helped me professionally but made the study and research process more engaging as it is a passion of mine.

“I’m delighted to have successfully completed this course and integrate learning about business with my engineering background. I would like to thank my colleagues and tutors for all their support in helping me achieve my master’s degree.”

Congratulations on the incredible addition to your already very impressive CV Hamza!

Sustainable Footprints have been giving a helping hand to a new and upcoming UK based, international accreditation business.  We have been supporting them with their financial planning and their UKAS registration for provision of verification products related to carbon footprinting.  We are looking forward to continuing to work with them and supporting them as they establish and grow their business.

Sustainable Footprints have another happy SECR customer.  This time an aviation supplier who is getting ahead of the game and embracing the value of carbon footprinting by completing their SECR a whole year early (this current accounting year is their first eligible year).  Utilising CEn-Calc, our bespoke carbon quantification tool, and our knowledge and expertise we have worked with them to calculate their carbon footprint and ensure they are ready for the real thing next year.

Director, Geri Findlay, has just completed her ISO 22301 Business Continuity Lead Auditor course adding to her already impressive resumé.  The value of business continuity planning is only now being realised by lots of businesses affected by Coronavirus.  Geri is looking forward to continue working with businesses in helping them survive and thrive during the pandemic recovery and any subsequent ‘second peak’ and beyond.