Cash boost for research and development at lighting company
A lighting manufacturer has secured £90,000 under an HMRC tax credit scheme designed to help innovative companies with research and development.
Hebden Bridge-based Urban Cottage Industries makes retro/vintage style lighting equipment, aimed at professional designers, architects and engineers.
CEO Stanley Wilson said the extra money had make a big difference to his firm, which invests heavily in innovation.
And Wilson, who founded the business in 2010 with his wife Sophie Gollop, urged other businesses to look into the HMRC initiative.
According to the Government’s statistics, around 80% of small and medium sized firms are eligible for the tax credits but don’t claim. Even if they know about the scheme, they often don’t realise what or how much of their R&D work qualifies them to apply.
“Identifying exactly what qualifies as R&D is not easy,” said Wilson. “We’d claimed ourselves twice before, but the experts almost doubled the value of what we received.”
Urban Cottage Industries, which employs 28 people, turned to an organisation called GovGrant for help.
GovGrant works with companies of all kinds and sizes, from small start-ups to FTSE 100 companies, securing grants averaging £60,000 – so far totaling more than £160m.
The organisation sends in technical analysts to find out what businesses do, how they are being innovative, and what parts of their R&D programmes may qualify for tax grants. GovGrant then puts together and submits a claim.
“The rebate GovGrant secured for us helped pay the bills – but what they did was actually worth more than just money,” said Wilson.
“The scheme exists because the UK economy needs more innovation. The day we spent with their innovation expert, at our own factory, helped us understand our business from a professional R&D perspective.
“Factorylux, our company’s exclusive range of specialist and bespoke lighting, has been relentlessly copied over the years, mostly because we didn’t scale quickly enough, and it’s a form of flattery that harmed the business.
“This opportunity gave us the boost we needed and helped us double down on R&D with a greater sense of focus.”
The business has worked on high-profile projects including a Hollywood film for Martin Scorsese, and has clients throughout the UK, Europe and the US – including Marks and Spencer, Louis Vuitton and Lush Cosmetics.
In the latest figures on the HMRC R&D tax credit scheme, published in September last year, Yorkshire and Humber businesses received more than £100m worth of tax relief for research and development.
The region came seventh out of 12 UK regions in terms of the number of claims under the scheme, with around 2600 claims, compared with around 4300 in the North West, and 7800 in London.
The total value of tax credits they received –just over £100m – put the region at ninth in the table, ahead of only the North East, Wales and Northern Ireland.
Luke Hamm, CEO of GovGrant, said too many businesses in Yorkshire were still not aware of what they’re entitled to. “Securing tax credits can make a real difference to a business’s ability to invest in research and development, and therefore to build its success and make a contribution to the economy of the region,” he said.
