RIFT R&D Tax Credits and the Freefly VR
by Nathan Weston
For the uninitiated Research and Development tax relief is a government scheme set up to encourage innovation in UK business. Any project that seeks to achieve an advance in overall knowledge or capability in a field of science or technology qualifies for either a cash reward or a reduction in Corporation Tax. For small and medium-sized enterprise (SME), like us, that reduction can be up to 230%! No wonder then that in the Global Innovation Index of 2015 Great Britain came 2nd in the league table of the world's most innovative nations.
The RIFT Group are a company that work with individuals and businesses to guide them through the process of identifying and making claims and are who we went to when developing our virtual reality headset, the Freefly VR. Over 18 months they have helped us identify £44,000 of qualifying expenditure via R&D Tax Credits, giving us friendly but professional advice. We’re a small business with limited cash flow, so this has helped us massively. We’ve used it to help encourage more investors to get involved, and we’re going to use the tax credit to fund our marketing strategy. The credit has given us more freedom to carry on innovating and developing our products, and the scheme has helped us prepare better for our accounting periods. Now that we’re aware of what can be claimed back, it helps us record things more accurately as we go.
The long-term plan that tax credits have facilitated is to have a dedicated R&D department to test the technology we're developing. Short term is to crack the US market and be a market a leader in Mobile VR hardware. To read more about exactly what RIFT helped us develop the Freefly VR check out their own blog on the project here.