The Courier & Advertiser (Angus and Dundee)
It pays to innovate in agriculture
THE farming sector has always moved forward through a mix of traditional practices and the adoption of new systems, advances in machinery, and innovative production.
Local firm EQ Accountants LLP work with many progressive businesses in the agriculture sector who have grown new crops or varieties, developed new machinery or systems and other forward thinking changes to their business.
EQ also act for many primary producers who have identified and grasped opportunities to add value to their raw materials to create products which they can market and sell, capturing valuable margin. The working relationships which have developed have proved to be mutually beneficial with EQ able to help these innovative clients secure significant tax savings from their endeavours.
EQ Partner, Graeme Davidson explains “We love working with innovative clients for obvious reasons – they are forward thinking and generally open to ideas and input to try to achieve the common aim of driving their business forward.”
“One particular area where EQ has been able to help such businesses is with claims for Research and Development (R&D) tax credits. Over recent years our clients across various sectors have benefitted to the tune of more than £11m from R&D tax credit claims.”
R&D tax credits are a government incentive to encourage innovation and technological advancements. The myth that R&D claims can only be made where scientists in white coats are involved is one which EQ are keen to dispel.
Graeme Davidson added “We have many examples where successful R&D claims have been made within the agriculture sector including advancements made in the manufacture and use of agricultural machinery, and advancements made to growing systems for certain crops to enhance shelf life and nutritional value.” To qualify for a claim the business must be a limited company and incur costs on an identifiable project which aims to achieve an advance in science or technology. The relief takes the form of a significant uplift in eligible costs from taxable profits, thus reducing the company’s corporation tax liability. Typically wages costs and the cost of materials used in the R&D process will be the main costs which will form part of a claim.
EQ Accountants LLP recently won Most Innovative Large Firm of the Year at the 2020 Innovation Awards and has a specialist R&D tax credits team working across their offices in Tayside and Fife.
‘‘We have many examples where successful R&D claims have been made ’’