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:
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, firstname.lastname@example.org.
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