What does R&D mean and how can it help to fund your business?

Vicki Strachan, Head of the Oxford office at leading intellectual property firm Mathys & Squire, talks to TBAT Innovation about R&D Tax Credits…

Research & Development (R&D) Tax Credits are a UK tax incentive, designed to encourage investment in R&D, which enable businesses to reduce their tax bill, or claim payable cash credits as a proportion of their R&D expenditure.

R&D Tax Credits can be a hugely effective way to inject additional finance into a business, and in recent years, there has been a steady increase in the number of businesses claiming them. However, there is still a large proportion not taking advantage of the scheme and for those that are, they may not be claiming all they’re entitled to, as qualifying R&D is potentially being overlooked.

Business Development Manager, Vincent Seddon, from TBAT Innovation, who provides business support for SMEs and, in particular, R&D advice nationwide tells me.

expertise to build a robust and maximised claim on your behalf?”

Some of the definitions on the right can be a little ambiguous, but if you and your business have said ‘yes’ to any of them, then you may be able to claim back some of your R&D spend.

To make an R&D Tax Relief claim, it’s important to invest time gathering relevant information in relation to your spend, as this can have an impact on the claim value. It is also crucial to include technical reports to demonstrate that R&D has been completed, focusing on the technical uncertainty faced.

Vincent goes on to explain, “It’s a long process to follow and can be quite timeconsuming if it’s done in-house. Important elements can be perceived not to be R&D, and potentially be omitted, or even worse, overlooked. Using a specialist R&D Tax Credit consultant can help avoid this from happening and serve as a fresh pair of eyes overseeing the claim.”

To make a claim for R&D Tax Credits, your business must have done the following:

 looked for an advance in science and technology

 identified a technical uncertainty and tried to overcome it; and

 ensured the technical uncertainty could not be easily solved by a competent professional in the field

Your project may result in a new process, product or service, or improve on an exisiting one

He goes on, “It can be difficult to navigate areas of the HMRC guidelines, and it’s important for an R&D Tax Consultant to take the time to fully consider and understand your business’s technical projects to identify all eligible activities. In many cases, making an R&D Tax Credit claim is left to the company’s accountancy firm, but do they have the experience, the time and the technical

Vicky Strachan added, “When I work with businesses, I find that it is always a sensible approach to ensure that there is a robust IP strategy in place which takes R&D into account. Quite often R&D is focused on crowded technical areas and it is important to work with an IP firm to help you uncover any prior art or patents from other businesses where R&D efforts may provide limited scope.

At Mathys & Squire, we work directly with R&D teams and technical directors, and can provide advice such as patent searching and identification of any prior art which could be used to help companies ensure they do not embark or invest time in developing new technologies which may, or may not be eligible for R&D claims.”

In summary, if you are not claiming R&D Tax Credits, or are claiming, but are unsure whether you are including all your eligible spend, get in touch with an R&D Tax Relief expert.

For help with your IP Strategy contact:

Vicki Strachan

Patent Attorney & head of Mathys & Squire’s Oxford office vjstrachan@mathys-squire.com www.mathys-squire.com

LISTEN WITH MOTHER? NOT QUITE WITH DEEPZEN’S NEW TECH

The Oxford Centre for Innovation, which provides workspace and support for young companies, has welcomed DeepZen, which has created a realistic voice using artificial intelligence that can convert text to audio, regardless of length.

Traditional speech systems generate every word separately, putting them together to form a sentence. DeepZen’s technology synthesizes the human voice to replicate emotions and intonations. Visitors to its website can hear artificial intelligence voices reading Ian Flitcroft’s The Reluctant Cannibals and Kafka’s Metamorphosis.

The new tech means that an audio book can be produced in days rather than weeks. DeepZen Chief Technology Officer and founder, Kerem Sozugecer, said: “A typical audiobook will cost around $5,000 to produce. We aim to reduce that significantly. A 10-hour audio book can be produced by us in just a few hours; the rest of the time is spent on

“We are currently creating audio books for publishers and simply charging for production, but we are also co-publishing with the independent UK publishing companies”

Oodle Car Finance wins Growing Business Award

editing to check for continuity, context and emotion. This will get quicker as our algorithm improves.”

DeepZen’s main focus is on audio books – currently an $8 billion market worldwide and set to grow by 25 per cent per year.

Kerem said: “We are currently creating audio books for publishers and simply charging for production, but we are also co-publishing with the independent UK publishing companies Legend Press and Endeavour Media and are in conversation with the big six publishing houses.

“Only three per cent of the two million books published annually are converted into audio books, so there’s a big gap in the market for DeepZen to fill.”

Oxfordshire Business Awards reveals new official media sponsor

The Oxfordshire Business Awards (OXBAs), which celebrate the county’s dynamic and growing businesses, has nominated Business & Innovation Magazine as its official media sponsor.

The OXBA’s 2020 awards will be launched at Oxford Science Park on January 9.

Paul Lowe, Chairman at OXBA, said: “We are delighted to welcome Business & Innovation Magazine as our official media sponsor.

“Its editorially-driven content is a perfect fit for the Oxfordshire business community, and we look forward to working with the team.”

Oodle Car Finance, the company that is aiming to change the way people buy used cars, has been recognised for its leadership and management with an Employer of the Year award at the Growing Business Awards.

Now in its 21st year, the Growing Business Awards recognise privately-owned UK companies.

Oodle Car Finance launched three years ago. Founder and Chief Executive Jonny Clayton said: “Winning the Employer of the Year award is of huge importance to us.

“We’ve created an inclusive, transparent and energetic culture, with a clear set of values to inform, inspire and engage Oodle’s community – our people and our partners.”

Oodle Car Finance’s Academy provides employees with training, skills and personal development. Launched in 2018, training ranges from influence and persuasion through to presentation and negotiation skills. Management training is also available to all its leaders.

Jonny added: “In the past nine months we’ve doubled in size so you can imagine, as the fastest growing business in Oxford, recruitment has been a huge focus for us.”