Looking for funding?
Find out about the latest grant funding opportunities available for the greentech sector in this section.
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How can Shaw Gibbs help
Shaw Gibbs can deliver an efficient grant audit based on our experience of the process. Our dedicated Grant Audit team are familiar with the standardised paperwork and processes agreed between the funding bodies and the accountancy profession. Our team can talk you through the process and help you avoid some of the pitfalls. We can advise on the relationship between grant funding and Research and Development (R&D) tax relief programmes as well as recommending a network of contacts who can assist with grant applications.
Do I need a Grant Audit?
Malik Salim, Shaw Gibbs
If you are applying for funding through a grant such as Innovate UK, Horizon 2020 or the forthcoming Future Fund, it is possible that the project costs will need a grant audit.
Audit requirements are set by the funding body and are stated within specific grant agreements. It is therefore important to check your award letter and associated grant conditions carefully as to whether you need an independent audit on the claims you have submitted.
The audit is carried out in order to ascertain whether you, as the recipient of the grant, has used the funding in-line with the grant conditions. Often, the audit report is in a format which is specified by the funder and it is usually necessary that the audit and final report preparation are carried out by a Registered Auditor.
It is important that you appoint an auditor at the acceptance stage of the grant rather than leaving this until a later stage. The auditor will then have a good level of understanding of your project from an early stage which will result in a more cost, and time-efficient grant audit. Unfortunately, not having an auditor in place may result in the awarding body clawing-back funds at a later date.
Whilst it is possible to use your current financial auditor for a grant audit, the work would need to be carried out under a separate engagement. It is worth noting that grant auditing is a specialised area and you may find that using an adviser who deals with a volume of grant audits beneficial.
What are R&D tax reliefs?
Research and Development (R&D) tax reliefs were introduced by the UK Government to reward companies for investing in innovative projects. Billions of pounds worth of funds were highlighted for such relief in the last Budget (March 2020)
The key features of R&D tax credits schemes are:
- You can claim retrospectively for the previous two years of up to 33.3% of qualifying expenditure identified
- HMRC have accelerated processing; in most cases, the cash payment is received by the company in just over one month from the filing of the claim
- The paperwork is relatively straightforward; unlike grant funding, the application is ‘free-form’, through an amendment to the company’s self-assessment tax return
- You can offset the claim to decrease profits and thus reduce future tax liabilities
R&D encompasses a much wider range of activities than most people realise, and it does not just relate to the development of new products. If your company has previously undertaken technically challenging work, you should explore whether you are eligible for R&D tax credits.
Research & Development tax reliefs – assistance with cashflow
As COVID-19 continues to impact on the day-to-day operations of businesses, considering all potential sources of income and short-term cash is key.
One option to explore is Research and Development (R&D) tax credits, which are available for innovative companies working on projects to develop new products or services, change processes or to do things differently.
Companies that are eligible for the tax incentives are extremely diverse and this tax relief is still underclaimed and somewhat misunderstood.
Who can claim?
All companies, large and small, can claim if they undertake qualifying work – even if they do not pay corporation tax because they are unprofitable.
Small- and medium-sized companies (mainly those with fewer than 500 staff), can generally claim a credit worth 25% to 33% of their eligible R&D expenditure, while for larger companies the credit is usually worth around 10% of the expenditure.
The average claim for an SME is over £50k
The average claim for R&D tax credits for an SME is over £50k (with the large company ‘RDEC’ claim being much higher), this can be invaluable for driving growth in a business or helping to protect you against economic challenges such as COVID pandemic we currently find ourselves in.
How Shaw Gibbs can help
The most successful claims for R&D Tax Credits deliver both strong methodology (that stands up to HMRC examination) and maximised benefit. There’s a lot of uncertainty around R&D so it really pays to seek specialist advice in making sure all your eligible costs are included.
We can help you identify eligible work and use our knowledge to help you maximise your company’s R & D claims. Therefore if you already know that you will qualify for R&D relief or you simply want to know if there is any company expenditure that may qualify, please get in touch for a no-obligation phone/video consultation.
OxLEP Go-Create grant funding
Are you an innovative entrepreneur or SME looking for funding?
OxLEP has a grant round due to open next week (2nd March)
The Go-Create grant round is open offered as part of the Innovation Support for Business (ISfB) programme.
Go-Create grants are available on a competitive basis for innovation projects within eligible SMEs from £1,000 to £50,000, under the De Minimis State Aid scheme with a minimum 2:1 co-investment requirement by the applicant business.
Examples of innovation projects include:
– Investment in product and service development
– Technological and applied research
– Early product validation actions
– Supporting advance manufacturing capabilities.
To find out more, please visit the Go-Create grant page.
OxFutures innovation funding
OxFutures is looking to fund low carbon innovations that are being developed by Oxfordshire-based businesses and university spin-outs.
Feasibility and implementation grants are available up to £25,000 on a 50:50 matched basis. Our grants can cover half your development costs. The remaining half needs to come from your own sources; either capital, seed funding, bank loans or private investment.
Contact Alison Grunewald, Business Relationship Manager at the Low Carbon Hub.
More info here: http://oxfutures.org/innovation/
ECargo bike grant fund
The Department for Transport has made £2 million funding available for the acquisition of ecargo bikes, to support green last mile deliveries. This funding is available to limited companies, sole traders, partnerships, charities and not-for-profit organisations. Public, community or third sector organisations are also eligible providing they meet the eligibility criteria.
eCargo Bike Grant funding covers up to 20% of the total cost of an ecargo bike, up to a maximum of £1,000 per bike. To be eligible for funding, an ecargo bike must have minimum 125 litre cargo volume capacity and minimum 130 kg weight capacity (combined rider and cargo weight).
Funding level: up to 20% of the total cost
Deadline: No deadline