Member Article

R&D specialists want clarity on Industrial Strategy

R&D specialists call on further clarity on Prime Minister’s Industrial Strategy

Jumpstart, the UK’s leading R&D tax relief firm, has welcomed the Prime Minister’s focus on investing in the UK’s R&D capabilities in the government’s Industrial Strategy.

Launching proposals for a modern Industrial Strategy to build upon Britain’s strengths, the UK government is preparing to offer a variety of supporting mechanisms, such as addressing regulatory barriers to innovation and resultant growth, as well as further supporting and investing in research and development.

Theresa May’s message comes on the back of the Chancellor’s Autumn Statement, in which Philip Hammond declared that he was “investing today for the economy of the future”.

Russell McGrath, client engagement manager for Jumpstart in the North West, said: “We welcome the government’s continued investment in R&D and innovation, as well as a call to do more to commercialise our world-leading science base and intellectual property.

“Furthermore, a cash injection of over half a billion pounds for the Northern Powerhouse is a welcome announcement, which will help to benefit businesses and people in the north.

“However, we would be interested in hearing about how the Prime Minister aims to drive innovation and growth in the North West and the remainder of the UK, as indicated within the Industrial Strategy. We must take into account recent statistics that illustrate investment in R&D is not evenly spread nationwide.”

“Companies in the North West account for just 9.9% of total R&D tax relief claims across the UK. This is in stark contrast to London and the South East of England, which accounted for 19.1% and 17.9% respectively of all claims made.

“With such obvious disparity from one part of the UK to another, it is imperative to focus not only on the obvious areas of historical innovative-importance, but also on those which can produce results which are just as rewarding, such as in Northern Ireland.

“The announcement of the Industrial Strategy is a welcome opportunity for UK companies to provide their specialist input on how the government can help reach its economic goals for its committed levels of investment. We look forward to consulting with the government on it.”

Jumpstart has helped its clients recover almost £80million in R&D tax relief and has identified over £404million in eligible R&D expenditure.

Jumpstart is solely focused on presenting detailed, accurate and compliant submissions to HMRC. It employs teams with the scientific and technical knowledge to identify and justify eligible projects for R&D submission. It deals directly with the staff involved in development to extract the relevant information that explains why the project meets HMRC criteria for eligibility.

After refining its report in conjunction with key staff, it creates a comprehensive financial schedule that allows HMRC to see exactly how the total claimed is broken down and justified.

After guiding the process through HMRC, Jumpstart secures, almost without fail, a tax benefit for the company in the form of a payable cash credit, a tax rebate, or an enhanced deduction that can be used against future profits.

This was posted in Bdaily's Members' News section by Angela White .