£18,000 for company working in two different industries
Tax savings of £18,000 for
Two innovative products in two different industries were created by an R&DCo client allowing them to make £18,000 of tax savings on the costs of materials and salaries of the directors. This was payable, despite the company making losses in its first two years.
These products are now under a patent and the profit on sales of products with a patent or licence is subject to tax at 10% compared to 19% allowing the company to continue making tax savings.
To do this the company developed a new gear shift mechanism on motorcycles that allows gear changes with zero foot movements, allowing for smoother and quicker changes and a smart switch for small storage rooms that shuts off the light automatically after a time delay. The switch can be used with any existing devices and is much more practical and cost-effective than using a sensor system.
If you are selling products that have a patent or licence, please contact the R&DCo team to find out how you could save.
Tax benefit: Saving £18,000
The R&D claim led to cash saving of £18,000.