How our client achieved a £2.7 million cashflow boost with Patent Box. - Haines Watts West Midlands

How our client

achieved a £2.7 million

cashflow boost with Patent Box.

The client

This client is a market leader in the development of products for the construction industry.

Having already worked with this manufacturing client on their Research and Development (R&D) claims, we identified that they held a patent for a significant component of their work. Our team carried out further investigation and found that they would be eligible for Patent Box...

Industry

Manufacturing

Turnover

£26.7m

Balance sheet

£30.6m

Claim tax saving

£835k+

The challenge

Identifying qualifying IP was a key challenge. The client was uncertain as to whether they could claim for the patented component or the larger product which incorporated the patented component. The latter was significantly more lucrative, but this required unravelling complex legislation and carrying out calculations to attribute profits...

The solution

Working closely with the client's technical team and assessing the product in question, we found that the IP incorporated into the final product and the overall project which included the patent. Therefore it could be treated as qualifying IP income.

We developed a bespoke methodology to qualify income and expenses relating to the qualifying IP within each project. The relevant results and information were then documented in a report and then successfully submitted to HMRC.

The results

Since engaging with this client on Patent Box, we have successfully submitted five claims for them. With our support, the company has saved over £2.7 million in tax solely from the Patent Box regime. This has allowed them to bolster their investments in further innovation and product development.