July 2011
Large-format digital imaging is still really a pioneering growth industry in this country. We, as print producers, are constantly striving to find new and innovative ways to create new products, find new ways to solve display problems and answer ever more demanding clients needs.
It may interest you to know that the Government recognises our need to invest our own money in research and development and under the Research and Development (R&D) Relief for Corporation Tax there may be help at hand.
As I understand it, the Government will now allow SME’s to write off, at a rate of 200%, any investment made in creating or developing new products.
For example, I have a client that wants to test a new concept in outdoor advertising. We need to print and install this new concept product at a public location so the client can photograph it and analyse the reactions it has on the general public.
The client doesn’t want to pay lots of money to me and is encouraging me to give him a ‘special rate’ in order for them to keep costs down. I have now shown him the tax advantages of allocating it to an R&D budget and all of sudden my cost is not so important because for every £1,000 he spends he get £2,000 against tax.
Ok, I may be over simplifying this, but my accountant thinks the reasoning is sound so that’s good enough for me to push it to my clients.
Go and have a look and see what you think. The details can be found at http://www.hmrc.gov.uk/ct/forms-rates/claims/randd.htm
Let me know your take on this………….
Comments please to industrymole@imagereportsmag.co.uk{jcomments on}
