Fashion benefits from R&D tax relief

As an entrepreneur and creative in the UK fashion industry you’ve probably heard the term Research and Development Tax Relief, but more likely then not thought to yourself  ‘there’s no way I would qualify for that’.

Research and innovation are an inherent part of forward thinking fashion; this can include designers developing new forms of wearable products such as smart technology accessories, or an individual trying to break into the fashion world by introducing a product with a strong social purpose like adaptive clothing.

If your business is finding new and innovative ways to find a solution for a problem in your field you may be eligible. But here’s the catch, R&D legislation will be seeing some changes by April 2020 and we want you to be prepared for the upcoming rules altering.

If you’re a small business, working day and night to bring your brand to life and funds are limited…there’s no way you can afford to hire permanent staff to fully benefit from R&D tax relief. Don’t be distraught if the upcoming changes will affect your relief or, if you discover your endeavours don’t qualify because there are other solutions to consider:

  1. Staff vs. Subcontractors
  2. Think about salaries
  3. Source funding opportunities
  4. Ensure you seek the advice of a professional

For those working in fashion, you might check most of the boxes in terms of location, research and eligible activities, but how many of you can afford a studio filled with full-time permanent staff? This is where the new rules will prove difficult.

Now is the time to seek professional advice on R&D relief, particularly for those small companies or start-ups who feel they will be affected negatively by these developments. Your advisor can help you identify relevant work you’ve undertaken to evaluate your eligibility for a potential claim and also work with you on your business plan and strategy for the next phase of growth.

To read the full report please click here: Changes to R&D Legislation

If you have any questions or comments, we’d love to hear from you, contact@www.doenhoff.co.uk.

 

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