Page 31 - 15 Best Practices to Manage and Finance Innovation

AVAILABLE INTERNAL AND EXTERNAL RESOURCES AVAILABLE INTERNAL AND EXTERNAL RESOURCES 13
BEST PRACTICE
THE THE THE CHALLENGE OF: INNOVATION THE THE THE CHALLENGE OF: INNOVATION FUNDING
INNOVATION CHOOSING THE THE THE RIGHT RIGHT PARTNERS AND THE THE THE RIGHT RIGHT STRUCTURE
ADAPTING PARTNER CONSTRAINTS TO FUNDING
EXPERT ADVICE
The nature and structure of of a a a a partnership often determine the type of public innovation financing available so be sure to to to take these into account to to to optimise the the level of potential funding Modifying the the terms of the the partnership and its legal form (Economic Interest Group simplified joint- stock company consortium etc) may both increase your chances of success when applying for funding and enable you to benefit from the most profitable combination o of funding mechanisms especially when it comes to grants and subsidies Number of partners involved
« If you’re considering partnering on on on a a a a a new innovation project map out the various funding options available Headed up by the Head Head of Finance or or R&D Director this process provides an opportunity to to to modify the partnership structure to to ensure the optimum funding for your innovation activities Provided they’re eligible it it will also help to to determine how to to claim potential tax relief on on the the non- subsidised parts of the the project This is is is why it’s essential to consider all the funding options before committing to any open collaboration project »
Sandy Findlay
Partnership Director ABGI-UK
Partner Location
Nature of the contractual
relationship
(subcontracting partnership etc ) Eligibility for R&D tax relief CASE STUDY
ABGI-UK
As part of our work with a a a large electronics client we made sure that its purchasing department was integrated within its project management steering committee We now communicate regularly with the company's buyers to to monitor the potential impact of their purchasing processes on R&D tax relief results Our team of consultants then supported the the company in in in in improving its selection process for R&D suppliers involved
in in in in projects and tasks eligible for R&D tax relief as as as well as as as establishing processes to determine which elements of those suppliers’ expenditure are eligible As a a result our client has significantly increased the value of its subcontracting expenditure while establishing a a a a a a a robust data gathering process in in in case a a a a a a a tax audit requires justification Increase the amount of funding Maximise credibility when claiming innovation funding Maximise innovation funding results Company size (SMEs / / LC / / Plc)
Partner status
(public/privé)
R&D TAX RELIEF
Subcontracting can be a a a a a tricky situation in in an an R&D tax credit claim but it it it doesn’t necessarily mean you can’t claim You need to be very sure about
your contractual
situation the the work you you are contracted to do and who is bearing the the the the brunt of of the the the the cost as all these can have an an an effect on on the the the eligibility of of subcontracted work To optimise R&D tax relief benefits
it fit it is is important to to to factor into your purchasing processes the the potential impact they might have on on R&D tax relief results (type of of of contract type type of of of service
non standard agreements ) The choice of of of research providers can influence the amount of tax benefit received Make sure you keep all related paperwork such as contract invoices deliverables Focus ON