Bristol is one of the major software and research centres in the U.K.
The city is becoming a leading silicon design centre and, according to
Science City Bristol, is second in size only to Silicon Valley in the
U.S.
Its nearest rival in this country is the city Cambridge. Furthermore, in the last ten years new businesses in South West England have attracted more than $550 million in investment funding. From that, shareholders have reaped more than $800. Examples of successful start-ups include XMOS. This firm is developing a microchip that will be at the heart of many electronic devices in decades to come.
Meanwhile, at the other end of the country in the North East of England, the University of Teesside in Middlesbrough is establishing itself as a software centre and all kinds of companies are springing to take on the graduates available each year.
One Middlesbrough software business called Sapere Software has produced two ground-breaking apps for phones. One is a multi-platform system for remote control of home security while the other lets users safely and securely control their finances.
The first one lets the user view camera footage from their home, adjust the angle of cameras, and check on pets and home workers. The product has been expanded to include Android, Windows Mobile 7, Blackberry and Symbian platforms.
These are examples of companies that are eligible for R&D Tax Credits and hopefully they are taking full advantage of this relief. This is especially important because the government revealed recently that the software and IT sector is failing to claim more £280 million worth of R&D Tax Credits.
It is suspected by industry experts that the reason for this is that Her Majesty’s Revenue and Customs (HMRC) guidelines for submissions of applications for this are complicated and also complex. In fact, one industry expert described them as, in some instances, being contradictory. This in turn means that some companies are not interested in applying for the benefit because the find the process off-putting.
According to research the money recovered could in fact massively change the sector in a positive way and transform it. It could be more competitive in the global market, which is being impacted by activity in North America and newly emerging Eastern economies.
Experts determine the level of unclaimed amount by comparing the United Kingdom with Canada. This comparison is made because that country is considered to be saturated when it comes to this. To reach the same level, domestic claims would need to go to£3.9bn per annum from today’s £1.1bn. So currently we can see that we have an almost shocking shortfall of £2.8bn for all sectors here.
Currently information technology, including the software industries, is approximately 10 per cent of the overall figure. Experts calculate that the sector is not claiming roughly £280 million a year. The picture is a little bit different in Scotland where an independent study of the small and medium enterprise start-ups in that Northern country show different variances amongst different sectors.
There are also variations across Britain.
Right from the start, looking at this industry, it is clear that investors and entrepreneurs are very smart and aggressive when it comes to their industry. But when it comes to tax issues and legislation there are in dire need of help. They need to be turning to their accountants or consultants to get this sorted out and to make their legitimate claims so that they can reinvest even more funding.
There is also an important link that needs to be made between the sector and the financial services people. One of the points that has arisen is that many bookkeepers and some firms are not fully clear what their clients are doing and the specialist nature of the developments. If this is the case, it's a certainty true that the correct advice is not forthcoming and savings cannot be made. Some accountants do not understand the technology, and some are generalists, understanding only a little about the real subtleties of the legislation. The result is either no claims can be accessed.
A number of organisations have struggled in these demanding economic times and they tell their banks over and over again that cash turnover is a problem. It is likely that if they were 100 per cent aware of how much money they could access through this scheme they would be very surprised and also extremely grateful.
Its nearest rival in this country is the city Cambridge. Furthermore, in the last ten years new businesses in South West England have attracted more than $550 million in investment funding. From that, shareholders have reaped more than $800. Examples of successful start-ups include XMOS. This firm is developing a microchip that will be at the heart of many electronic devices in decades to come.
Meanwhile, at the other end of the country in the North East of England, the University of Teesside in Middlesbrough is establishing itself as a software centre and all kinds of companies are springing to take on the graduates available each year.
One Middlesbrough software business called Sapere Software has produced two ground-breaking apps for phones. One is a multi-platform system for remote control of home security while the other lets users safely and securely control their finances.
The first one lets the user view camera footage from their home, adjust the angle of cameras, and check on pets and home workers. The product has been expanded to include Android, Windows Mobile 7, Blackberry and Symbian platforms.
These are examples of companies that are eligible for R&D Tax Credits and hopefully they are taking full advantage of this relief. This is especially important because the government revealed recently that the software and IT sector is failing to claim more £280 million worth of R&D Tax Credits.
It is suspected by industry experts that the reason for this is that Her Majesty’s Revenue and Customs (HMRC) guidelines for submissions of applications for this are complicated and also complex. In fact, one industry expert described them as, in some instances, being contradictory. This in turn means that some companies are not interested in applying for the benefit because the find the process off-putting.
According to research the money recovered could in fact massively change the sector in a positive way and transform it. It could be more competitive in the global market, which is being impacted by activity in North America and newly emerging Eastern economies.
Experts determine the level of unclaimed amount by comparing the United Kingdom with Canada. This comparison is made because that country is considered to be saturated when it comes to this. To reach the same level, domestic claims would need to go to£3.9bn per annum from today’s £1.1bn. So currently we can see that we have an almost shocking shortfall of £2.8bn for all sectors here.
Currently information technology, including the software industries, is approximately 10 per cent of the overall figure. Experts calculate that the sector is not claiming roughly £280 million a year. The picture is a little bit different in Scotland where an independent study of the small and medium enterprise start-ups in that Northern country show different variances amongst different sectors.
There are also variations across Britain.
Right from the start, looking at this industry, it is clear that investors and entrepreneurs are very smart and aggressive when it comes to their industry. But when it comes to tax issues and legislation there are in dire need of help. They need to be turning to their accountants or consultants to get this sorted out and to make their legitimate claims so that they can reinvest even more funding.
There is also an important link that needs to be made between the sector and the financial services people. One of the points that has arisen is that many bookkeepers and some firms are not fully clear what their clients are doing and the specialist nature of the developments. If this is the case, it's a certainty true that the correct advice is not forthcoming and savings cannot be made. Some accountants do not understand the technology, and some are generalists, understanding only a little about the real subtleties of the legislation. The result is either no claims can be accessed.
A number of organisations have struggled in these demanding economic times and they tell their banks over and over again that cash turnover is a problem. It is likely that if they were 100 per cent aware of how much money they could access through this scheme they would be very surprised and also extremely grateful.
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