Strategic R&D Tax Relief for the North Wales Manufacturing Sector
The manufacturing sector in North Wales, including the industrial heartlands of Anglesey and Gwynedd, is a hotbed of innovation. Companies are constantly refining processes, developing new materials and overcoming technological challenges. However, many established manufacturers fail to claim the full extent of the R&D Tax Relief they are entitled to, often because their general accountant lacks the specialist knowledge to identify all qualifying activities.
Further, many established Gwynedd-based SMEs are completely unaware of the benefits of the Patent Box tax relief that has been around since 2013.
This case study illustrates how IP Tax Solutions, led by Steve Livingston LLB FCA, partnered with a North Wales-based manufacturer to unlock a substantial series of HMRC-compliant Patent Box Tax Relief claims.
The Client and the Challenge
Our client, a medium-sized manufacturer based near the A55 corridor in Anglesey, North Wales, had been developing new products for several years and successfully securing patents to protect their valuable intellectual property. Their incumbent general accountant had no knowledge of the Patent Box government incentive and so the business owner reached out to Steve Livingston at IP Tax Solutions located at M-Sparc, Gaerwen, Anglesey.
The Challenge: The client had successfully secured qualifying patents but was initially unaware of the Patent Box relief. Timing was critical as if we didn't act fast, earlier claims would be time-barred. IP Tax Solutions had to help build out the revenue and costs tracking to calculate the claim for each accounting period.
The IP Tax Solutions Approach
- Deep Technical Review: Steve Livingston conducted a detailed review of the client's operations, spending time on the factory floor in North Wales.
- Identifying Qualifying Patents: Not all patents qualify under the UK Patent Box relief and so it was necessary to carry out a detailed review of the patent portfolio and then to track the revenue/costs to the patents and the R&D nexus fraction.
- Robust Financial Substantiation: Detailed calculations were produced within a detailed report to substantiate the claim and we worked with the company's accountant to help amend the CT600 tax returns to incorporate the Patent Box claims.
The Result: Significant Tax Savings (Year on Year)
By applying our specialist knowledge and Big 4-level rigour, we were able to unlock total Patent Box tax savings of £127,000 so far for the client - and these claims can be filed year on year.
Client Quote (Anonymised): "Many thanks for your work on our latest claim, great result and much appreciated!"
Conclusion for Anglesey and Gwynedd Manufacturers & Engineers
If your North Wales manufacturing / engineering or other IP-rich company is filing patent applications, you may have a Patent Box claim. Don't let a generalist accountant limit your potential tax savings. IP Tax Solutions provides the specialist expertise to ensure your innovation is fully rewarded.
Contact us today to find out how much Patent Box Relief your Anglesey or Gwynedd business could be missing out on.