R&D Tax Credits: Vital funding for cyber security
PUBLISHED: 12:02 14 November 2017 | UPDATED: 12:02 14 November 2017
With cyber-attacks on the rise, innovation for business is crucial, James Geary of Randall & Payne explains funding for advances in technology
R&D Tax Credits have been around for some time and are designed to help companies invest in new technologies. Currently there are few areas moving faster than cyber security, as the speed and volume of new threats means that the industry has to innovate at a very fast pace, with no time to sit back.
This inevitably comes at a cost as experienced IT professionals are not always easy to find and the recruitment market is fiercely competitive. Companies are having to make very attractive financial rewards available to attract and retain talent, which is challenging especially in a time of business growth or with a fledgling business.
R&D Tax Credits can really help in this situation, as they provide a generous cash boost to businesses to help them to fund their cyber security innovations. In practice, these claims can help companies to afford to recruit employees rather than rely on often more expensive subcontractors or agencies, and take their business growth up a gear at the same time. Furthermore, their availability in an early stage, when the business may not have the track record to be able to secure some other kinds of funding, can be a game changer for a young business.
Through our sponsorship of CyNam (a new not-for-profit organisation bringing cyber professionals together to network and share experience) we know there is huge local expertise in this area, and a significant demand for new solutions in the market. The last evening event attracted nearly 200 attendees, and recruitment and cash flow are key concerns for many of these business owners.
In our presentation at the last CyNam event, we highlighted a number of examples of IT companies we have assisted, recovering on average around £30,000-£40,000 for a company in tax refunds or credits from the first claim.
Statistics on R&D claims published in September show that the South West region claimed around £130 million in the 2015-16 year, out of just over 2,000 claims. Interestingly, the value of claims on average is quite a bit lower than some other regions. This reflects the number of small and medium sized businesses in our region that claim the tax credits, and demonstrates how important these companies are to our local economy. As a sector, the value of national claims for IT come second only to manufacturing, and this gap has almost closed.
Could you be missing an opportunity? It costs nothing to get a second opinion. To discuss the potential application of R&D Tax Credits to your business, please call James Geary on (01242) 776000 or email firstname.lastname@example.org to arrange a free, no obligation meeting.
To find out more about CyNam and their various events, visit the website here.