RESEARCH & DEVELOPMENT
WHAT YOU SHOULD KNOW ABOUT R&D
The FMPA have launched an initiative to inform staff at all clubs in the Championship, Division 1 and 2 of the potential to undertake R & D within their departments.
While the thought of R & D might seem alien to many, the process of engaging and benefiting from this process can bring huge rewards to both the Clubs and the Medicine and Performance departments via a potential tax rebate available to your club for qualifying medical/rehab activities.
The FMPA have been working closely with Tom Wilkinson- a Chartered Accountant and Tax Consultant at Pierce Chartered Accountants (FMPA Accountants) -in order to generate Research and Development tax credits for football clubs. It is worth noting that clubs can go back two financial years to make claims.
At the beginning of the 2016/17 season the FMPA were instrumental in helping to initiate a pilot with Blackburn Rovers FC and the success of their claim means the Club are now set to retain the services of our Accountants going into the new season.
So, what does this mean?
Essentially the Medical and Performance department is the one area of a club where much of the R&D naturally occurs. Some qualifying activities include rehabilitation development methods where public information is limited, head injury research and performance analysis tools. The range of qualifying activities are in fact already mapped out making them easy to identify at each club and accordingly there is usually very little work involved in managing this whole process.
The wages costs and other direct costs incurred in these activities can attract enhanced research and development relief leading to a corporation tax repayable credit from HMRC to the Club. Even if the football club doesn’t pay corporation tax, a cash tax credit can be claimed, which can be reinvested in the club and its medical team budget.
Saving your club money is undoubtedly a positive move for all concerned and it is worth noting that this saving should subsequently be re-invested into the medical and performance departments budget. Indeed, the HMRC say the saving should be re-invested in further research/training. This is why the FMPA are so supportive of the project since it is designed to benefit our members, their departments and their working environment.
In order to find out more information we would recommend you contact former Blackburn Rovers Head of Medicine & Science Dave Fevre who will give you an outline of the process from a department’s perspective in a few short minutes. Please email david.fevre@ ntlworld.co.uk or contact him directly on 07747 012241 where he will be happy to advise.
Thereafter we have organised a free telephone call with Tom in order for you to discuss initiating the process of R&D. Please email firstname.lastname@example.org to set this up.
The club’s Finance Director should also be involved in the claim, but we would recommend doing this after the initial consultations. They should also be made aware that this is not an aggressive tax avoidance scheme.
This is a great opportunity for you to help your club and in return gain additional income for your department each and every season.