Bosses at a York business that has employed two new staff members with money it received through a Government-backed business incentive to boost the economy, are hoping to spread the word about the scheme so that other businesses can benefit.
Richard Wilsdon, director at Britcab, received almost £68,000 as a cash boost this year alone (and similar figures in the three years previous) for his family business after the financial experts at RDS (Research and Development Specialists Ltd), identified his firm was eligible to claim during a quick, fifteen-minute telephone conversation. The funds have enabled him to employ two new staff members and invest in several research projects to address sector challenges and further grow his business.
Richard said: “We were unaware of the initiative until RDS explained it to us. We were suspicious to start with as, being a smaller family-owned business, it’s not something we had ever heard of or been aware of. But RDS were extremely professional and within fifteen minutes they had a grasp of our business and an idea of what we could potentially claim for.
“That was three years ago and with the help of RDS, we have now had a number of successful claims over consecutive years. Honestly, we were surprised at the types of activities that made us eligible, we had been working on new protype units and working at height systems, which both qualified for R&D tax credits. It has been a learning curve for us that has brought back a substantial chunk of money.”
The HMRC tax incentive is available to any company no matter the size. It rewards those undertaking original research and development with tax credits that can either be deducted from corporation tax or if a claim is historical, claimed back as a repayment of overpaid corporation tax. The aim of the Government scheme is to stimulate innovation and boost the economy.
Britcab has reinvested the funds it has received through R&D into further initiatives and additional employees across its depots.
Richard added: “With the claims we’ve received over the last couple of years, we have fundamentally changed the way we approach certain aspects of our business. We now always have a new product, initiative or idea under investigation as we have the security of knowing that we’re not wasting resources and that we will be supported financially.
“It has changed everything really; it gives us the security to investigate avenues and ideas that we would previously have been apprehensive to spend the time and money on.
“The pandemic and large raw material price increases have meant a perfect storm that we have had to navigate in the last 18 months. The incentive has helped us with new product lines, for example our Medcab Unit was designed once the pandemic hit. We have also been able to trial new prototype units with different designs/external claddings as prices for Cedar, and more common materials have continued to rise.
“Looking forward, as we grow, we are now looking to design our own bespoke content management system for tracking portable cabins, enquiries and marketing and we believe RDS will be able to help us with a claim in this respect.
“All that aside, however, not only has the money we have received back been re-invested in more R&D projects, but we have also been able to take on two further employees (one of them an apprentice) as a direct result of the monies received from our claims.
Richard said: “I would highly recommend that any company look into whether they are eligible. It has been truly transformational for our business.”
Mark Joyner from RDS said: “This is R&D working at its best and demonstrates exactly what the scheme was set up to achieve. Not only has this company created several bespoke new products and prototype materials that could be invaluable to other businesses, but it also has generated the funds to employ two new staff members, one of which is an apprentice. It is directly influencing employment in the local area.
“There are so many companies out there like Richard’s that could be benefitting from cash influxes totalling tens of thousands. At RDS, we’re on a mission to spread the word and help as many businesses as possible to access those funds.”