R&D Tax Credits: What are they and how do they benefit Jewellery Companies in the UK?
Leyton UK are a London-based financial consultancy who help jewellery companies to claim Research & Development Tax Credits for innovation. Leyton UK Associate Tim Durance explains to Jewellery Outlook Editor David Brough how it works.
Q. Who are Leyton and what is the Research & Development Tax Credit scheme?
Tim Durance: Leyton are an innovation-funding consultancy and the UK’s largest specialist in Research & Development (R&D) Tax Credits, a government incentive that rewards UK companies for investing in innovation.
In the UK, jewellery businesses must innovate in response to the ongoing challenge of cheaper imports. This means enhancing capabilities, improving processes and becoming more efficient. R&D Tax Credits allow businesses to reclaim up to 33% of the associated costs and reinvest them in equipment, staff or further R&D.
Q. What type of companies are most likely to qualify for R&D Tax Credits and benefit from Leyton’s expertise?
Tim Durance: In Jewellery, we work with everyone from foundries, casting companies and manufacturers to designers and retailers. Any business that develops new or bespoke products or enhances processes or services is likely to qualify. If in doubt, Leyton’s process begins with a free consultation to help assess your eligibility.
Q. How significant are the tax rebates that Leyton can broker for UK jewellery companies?
Tim Durance: Qualifying R&D costs in the jewellery sector are high and therefore the benefits are significant. Recently we have worked with a small manufacturer with four staff who recovered the equivalent in tax relief of an entire salary each year.
Q. How are benefits realised and what does it mean for businesses?
Tim Durance: R&D Tax Credits yield a benefit in as little as 6 weeks, often in the form of a cash injection.
In jewellery, most businesses have an equipment wish list. Investing in new equipment such as 3D technology seems to be a priority. One client recently invested some of their benefit in laser welding technology. This has enabled them to complete small adjustment work in-house, reducing costs and lead times for their clients.
Many companies are investing in software, to improve efficiency or develop better retail platforms for consumers. Some businesses simply want to improve operating capital at a time when consumer spending is low.
Q. Why should a jewellery company use Leyton rather than an accountant?
Tim Durance: Unlike accountants, Leyton employ a team of over 70 technical R&D consultants, including material scientists who have extensive experience producing R&D Tax Credit claims for companies in the jewellery & precious metals sector.
I would liken it to buying castings: would you buy your jewellery castings from a jewellery specialist like Weston Beamor or from someone who casts for the automotive industry?
Our consultants do the leg work and manage the entire claims process allowing clients to focus on their business.
Q. What is Leyton’s track record?
Tim Durance: We have a 100% success rate. We use a tried and tested methodology that has delivered over 7,500 successful claims in the last 10 years, worth over £350m to our client-companies. We work in partnership with our clients and will only charge a fee when savings are identified. It’s a win-win.
To find out more about R&D Tax Credits or other Leyton services please contact:
Tim Durance, 07534 505 681, [email protected]