DISCLAIMER: Please note that this blog contains numerous terrible puns! RESISTANCE is futile!
Michael Faraday was born 22nd September 1791 and is one of history’s greatest scientists. His discoveries in the areas of Material Engineering, Electromagnetism, Chemistry, Physics and Electrochemistry have formed the backbone of much current technology and innovation.
Sadly, during his lifetime R&D Tax Credits were not available, but here we ask, “what if they were?”
By chance TBAT Innovation met Michael at one of the many UK based engineering trade shows that they both enjoy attending – keeping up to date in the FIELD with innovation and industry in the UK.
It was soon after this meeting that Michael expressed a lingering thought that was in FLUX regarding the creation of motion by the application of electricity from one of his chemical batteries. Seeing the possible implications of this discovery, and the brilliance of Michael’s ingenuity, TBAT Innovation went about supporting Michael’s innovations suggesting all the various funding CIRCUITS available to him for his work.
Following this initial DYNAMIC meeting, TBAT Innovation were invited to meet for a more in-depth conversation with Michael and his team, free of CHARGE (no pun intended, we do this for free). Very soon within this conversation TBAT saw that Michael’s Limited company that had been doing the work (not historically accurate) should have been claiming R&D Tax Credits.
Although initially sceptical about the prospect of “free money”, TBAT soon eased their worries explaining the government scheme had been established to support people like them – emphasising the POTENTIAL of a R&D Tax Claim. TBAT highlighted that Michael’s company could claim for:
Subsequently, TBAT Innovation met, face-to-face, with the required company Directors, Project Managers, and Researchers. Although these meetings took time and ENERGY for the TBAT Consultants to visit Michael’s team, the Researchers appreciated not having to create lengthy, HMRC-focused reports, but rather having conversations which were transformed into a bespoke report by the TBAT Consultant.
Resulting from this claim there was a significant saving. What was even better, because the company had thus overpaid in previous tax years, HMRC were able to provide the reimbursement for the previous years, not as a differed benefit but as an immediate cash input to the company’s bank account – to be spent as the company liked. SHOCKING but true!
Following this initial claim, Michael chose to CONDUCT the activities of the company toward developing three types of electric motors. These novel projects were in different stages of development: one at concept stage, one at prototype stage, and the final one doing adjustments before release to the public. When TBAT Innovation reviewed this work, they were able to show that all these projects, and supporting activities for them, featured eligible R&D expenditure. Even when Michael explained that one of these projects failed, TBAT were happy to inform him that its costs were still allowable for R&D Tax Credits.
Overall, Michael acknowledged the expertise, experience, and skill of the work supplied by TBAT Innovation, saying “if we had done this work it would have claimed less, taken us longer, and removed us from our focus”. Finally, Michael also added: “TBAT has been the spark to keep us motoring.”
While R&D Tax Credits would have been available to Faraday, had his work taken place in current times; there is also a number of grant funding opportunities that would support his research. Below are just a few examples of grants that TBAT could have helped Faraday access.
By clicking on the image above, you will be taken to our grant funding calls page to discover all of the current and upcoming funding competitions.
The HMRC PAYE Cap is now live for any R&D Tax Credits claims via the SME Scheme, for financial years starting after 1st April 2021.
Understanding how to calculate R&D Tax Credits claims can be a difficult task. Our expert consultants have put together their key steps for a successful R&D Tax Credits claim calculation.
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