Growth in Research & Development (R&D) tax relief claims totalled over £4bn last year. Introduced by the Government in 2001, the purpose of R&D tax relief is to offer tax credit benefits to those businesses who develop scientific and technological innovation across many industry sectors here in the UK. Reportedly to date, £26bn has been returned in tax relief to businesses across the nation and yet according to industry specialists the scheme is yet to be fully utilised.
Were you aware that Sex Tech is a key area where R&D claims are currently not being taken advantage of?
Without a doubt, Sex Tech is consistently producing pioneering work that would easily qualify under the R&D tax relief framework. Whether it is a new technology, stimulation technique, material or even the way these products are made, any and all new advancements tend to be leading innovation in the sector.
Presently the amount of Sex Tech companies applying for R&D is staggering low. This leads us to ask, is that because Sex Tech is either ignored or seen as too much of a taboo? Or is the onus on companies like you who might not even realise that you qualify?
In short, any UK limited company that is spending money on developing new products, or enhancing existing ones is eligible. Even if you’re not sure if your new product is possible, or you don’t know how to achieve it in practice, you could be resolving technological uncertainties and therefore be carrying out qualifying R&D.
The important thing to remember is that the Government’s accepted R&D definition doesn’t have to have been successful to qualify. If your project is ultimately unsuccessful but sought a solution, it could still be R&D. It is worth asking your accountant to look into this for you but you can also look for advice from HMRC and specialist tax advisers if your accountant is not 100% certain.
For more about R&D Relief click here.
If you’ve got an idea you want to take to market, we will assist you through your journey. Our services can include trend spotting and feasibility of a new adult toy product, ergonomic studies and reverse engineering which could all be attributed to R&D. Although we do not fund projects here at Sated Design, we have a comprehensive directory of business angels and companies who regularly invest in new businesses who wish to develop their products.
Contact us today and learn more about our services and how we can help.