Entrepreneurial Business Coach

The company developed two innovative products in two different industries:

  • A new gear shift mechanism on motorcycles that allows gear changes with zero foot movements which allows smoother and quicker changes.
  • 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.

The R&D claim on the costs of materials and salaries of the directors resulted in a cash back of £18,000. This is 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%.

The R and D Company research and development tax relief

Tax benefit: Saving £18,000

The R&D claim led to cash saving of £18,000.