Innovation is the lifeblood of a thriving economy, and businesses that invest in research and development (R&D) play a crucial role in driving progress.
Recognising the importance of continuous improvement and ambition to originate creative solutions, Sumer Northern Ireland is proud to sponsor the Excellence in Innovation category at the Belfast Telegraph Business Awards.
With a highly specialised team, including three engineers with experience in the pharmaceutical, cybersecurity and aerospace sectors, Sumer Northern Ireland has built a reputation as a trusted advisor in the field of R&D tax relief and patent box claims.
Cathy Kennedy, associate director at Sumer Northern Ireland, said: “With so many complexities in the R&D tax relief system, businesses need expert support to ensure that they are analysing and recording their R&D activities correctly in a timely manner and in accordance with the relevant legislation.
“Our team firmly understands the financial and technical aspects of innovation, allowing us to provide tailored guidance that adds real value, and we can also assist with any grant applications that may be applicable.”
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In recent years, HMRC’s approach to R&D tax claims has altered significantly to mitigate against fraudulent claims.
With a more stringent review process in place, the Sumer Northern Ireland team is fully focused on innovation taxes and ensures clients are complying with the relevant requirements, helping businesses fully understand the tax reliefs available, submit compliant claims, and remove ambivalence and delay by using technical subject matter experts.
Ms Kennedy said: “Post-Covid, HMRC’s R&D tax relief process is more stringent, and businesses need to be prepared for increased scrutiny.
“We proactively work with our clients to ensure their claims are robust and they have a sustainable plan for R&D analysis going forward, with involvement from factory floor to the design team and the finance team to the CEO.
“The Advanced Notification Form (ANF), which was introduced for accounting periods starting on or after April 2023, represents another major shift in the R&D tax relief process.
“Businesses must now notify HMRC of their intent to submit a claim at least six months from the end of their accounting period or risk losing the ability to claim entirely.
“This update places a greater emphasis on proactive planning and compliance, making expert guidance more crucial than ever.”
Another key area where Sumer Northern Ireland can help businesses is in responding to HMRC enquiries, which are occurring at an unprecedented rate.
One method of response utilised by the team is alternative dispute resolution (ADR).
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While R&D tax relief is widely recognised, the patent box regime, which offers a lower rate of 10% corporation tax for profits attributable to patents, remains underutilised, despite offering significant tax savings.
Given the recent rise in corporation tax, patent box — which was introduced on April 1, 2013 — is an invaluable tool with a massive tax differential for innovative companies looking to enhance their financial efficiency.
Ms Kennedy said: “Patent box is an excellent opportunity for businesses to make significant tax savings, yet many are not taking advantage of it for a number of reasons, including lack of awareness, criteria, costs and a reluctance to disclose trade secrets.
“We want to change that by helping businesses implement strategies to benefit from this underused scheme.
“As proud sponsors of the Excellence in Innovation category, we’re looking forward to celebrating the businesses that are driving progress and economic growth. Good luck to all the entrants.”
To find out more, go to www.sumerni.co.uk. To enter the awards, go to www.belfasttelegraph.co.uk/businessawards/enter