THE CONVERSATION YOUR EMAILS, BLOGS AND SOCIAL MEDIA POSTS R&D tax credits: a warning


In October, HMRC published its annual statistics on R&D tax credits. These incentives, which reward businesses for their investments in innovation, are an important part of the government’s industrial strategy. Overall, the story told by the HMRC figures is a cause for optimism: the number of businesses claiming for the first time has increased significantly. But there is, I fear, a sting in the tail. There has also


been a growth in the number of small R&D tax credit claims – a cause for concern. More than three-quarters (77 per cent) of claims made by SMEs were worth less than £50,000. Remarkably, 18 per cent were worth less than £5,000. R&D is a costly activity for a business, so these values seem staggeringly low to me. It could be that these first-time claimers are


nervous, asking only for a small portion of what they deserve. But what concerns me more is the likelihood that they have been advised – wrongly – to do this in the hope of reducing the risk of HMRC scrutiny. Worse still, they might have been making small but baseless claims for activities that aren’t really R&D. Given that there has been a marked increase in


HMRC’s focus on quality, it’s more important than ever to have confidence in your R&D tax credit claim – a small claim isn’t necessarily a high-quality one. If yours is very small, I would recommend choosing your adviser wisely to ensure that the business is protected. After all, you’re the one signing its corporation tax return, so the risk is yours and yours alone. Simon Brown, chartered tax adviser and the founder and MD of ForrestBrown


YOUR TWEET S @PhilJones40


“This was a very good read on the train today… @DirectorIoD. Particularly enjoyed the @simonsinek piece on infinite business and the @SusanHallam article on #leadership.”


@ANGETERRY


“Delighted to feature in @DirectorIoD with six steps for businesses to cut their #carbon footprint in response to #climatechange. Perfect timing as companies look to support #ClimateStrike tomorrow @The_IoD.”


@AndreasHT


“Heard @simonsinek at a talk on #infinite #mindset earlier this year. Excellent summary in @DirectorIoD if you want a taster.”


Director is published for the Institute of Directors by SevenC3, 3-7 Herbal Hill, London EC1R 5EJ


EDITORIAL AND PRODUCTION directormagazine@ seven.co.uk Editor


Chris Maxwell Technical editor Neil Cole


Design director Scott McKenzie Designer Matt Cotterill Picture editor Tivina Elliott-James Contributing editors Ryan Herman, Christian Koch, Piers Martin Senior production manager


Elizabeth Knipe Deputy production manager


Chris Gardner


COMMERCIAL directorsales@ seven.co.uk 020 7775 7708 Head of sales Dan Chester Account sales manager James Womack Commercial project manager Rachel Coburn MDs Michael Doukanaris, Mark Smith


Thanks this issue to Alberto Antoniazzi, Carum Basra, Michał Bednarski, Claudia Catelin, Jon Enoch, Angela Goutkin, Adam Greenwood, Liz Hall, Dani Hart, Lauren Hay, Will Higham, Euan Holmes, Tom Jackson, Dan Matthews, Alex Mitchell, Edwin Morgan, Allie Renison, Marc Smith, Kamile Stankute


YOUR BLOGS


Advice from England rugby union coach Eddie Jones David Watt, CEO of the CI Group, shares leadership insights from his recent meetings with Eddie Jones.


CONGRATULATIONS…


… to Fraser Brown, who won a luxury stay at Down Hall Hotel in Hertfordshire. For a chance to win a stay, with dinner, at Mount Haven Hotel in Cornwall – plus entry to St Michael’s Mount – turn to p65.


Inspiration from the Digital X summit IoD member Marion Marincat reports from the gathering in Cologne, which featured talks from leaders including Sir Richard Branson and Sir Tim Berners-Lee.


Read these blogs at director.co.uk


CONTACT US directormagazine@seven.co.uk


TELL US WHAT YOU THINK To contribute to the letters page, or to comment on anything published in Director, email directormagazine@seven.co.uk or write to the editor, Director, 3-7 Herbal Hill, London EC1R 5EJ


JOIN OUR READER PANEL Are you a member of the IoD? To join the Director reader panel, email directormagazine@seven.co.uk


60 director.co.uk @directorIoD director.co.uk/contact BLOG FOR DIRECTOR


Would you like to write a blog for the website? Email directormagazine@seven.co.uk to send us your ideas


TAKE PART IN A ROUNDTABLE Email directormagazine@seven.co.uk to register your interest in participating in Director’s roundtables


© All rights reserved. Reproduction in whole or part without written permission is strictly prohibited. Colour transparencies, manuscripts or disks submitted to the magazine are sent at the owner’s risk. Neither the company nor its agents accept any responsibility for loss or damage. Unsolicited material should be accompanied by a stamped self-addressed envelope. Director is a member of the Independent Press Standards Organisation and is committed to upholding the Editors’ Code of Practice. If you wish to make a complaint under the code, or if you have a correction, please contact Director at SevenC3, 3-7 Herbal Hill, London EC1R 5EJ.


BUSINESS PRESS


JULY 2018 TO JUNE 2019: 51,153


A 12-month subscription:


The rest of the world £37 (including post)


UK £20 Europe £28


MEMBER OF


THE PROFESSIONAL PUBLISHERS ASSOCIATION


Opinions expressed do not necessarily reflect IoD policy. The IoD accepts no responsibility for views expressed by contributors. Advertisements and reader offers are not endorsed by Director or the IoD.


INSTITUTE OF DIRECTORS 020 7839 1233 iod.com SUBSCRIPTIONS 020 7766 8866 iod.com MEMBERSHIP 020 7766 8866


schemes. Both mills have ISO 14001 and EMAS accreditations. Printed by Wyndeham [Roche] Ltd, Victoria Business Park, Roche, St Austell, Cornwall PL26 8LX. Mailed by South West Mailing Ltd. ISSN 0012-3242.


Director cover and text paper is supplied by Wyndeham Roche and produced from sustainable fibre through certified


Director is published for the Institute of Directors, 116 Pall Mall, London SW1Y 5ED.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68