BROWN BUTLER SECURES R&D TAX RELIEF FOR LEEDS COMPANY’S PLASTIC RECYCLING BREAKTHROUGH
A Leeds-based company has claimed substantial tax relief after developing a breakthrough in plastic recycling, thanks to expert guidance from local chartered accountants Brown Butler.
Industrial packaging re-conditioning specialist PackCare has spent £350,000 devising a system which makes virtually all highly contaminated plastic recyclable.
Brown Butler partner Robert Solyom worked alongside the company to help it claim research and development (R&D) relief against its corporation tax liability.
Peter Hunt, managing director of Garforth-based WasteCare Group which owns PackCare, said: “Drums and intermediate bulk containers which had become highly contaminated through the influence of adhesives, dyes and paints couldn’t be recycled, as conventional industrial wash systems weren’t able to purify them. They therefore often ended up going to landfill sites, increasing the environmental hazards these locations pose.
“But we’ve developed a pre-wash process and wash and dry system that can remove even the highest amounts of contamination.”
Peter said Brown Butler had been essential to the project because of their detailed knowledge of the R&D tax relief scheme and practical business sense.
He said: “Robert and his team steered us efficiently and effectively through the claiming procedure, making what could have been a very complex process seem straightforward.”
PackCare has been recycling containers and plastic materials since 1948. It offers a packaging compliance scheme to help customers understand and deal with relevant waste simply, efficiently and cost-effectively.
PackCare’s activities also include operating a collection and recycling service across the UK and Ireland, supplying new and reconditioned containers at low cost and offering financial rewards for different types and grades of container.
The R&D tax relief rate in the scheme for small and medium-sized businesses, under which PackCare claimed, rose from 175 to 200 per cent from this April. The level will increase again to 225 per cent from April next year.
Mr Solyom said: “We have a great deal of experience in helping numerous businesses in a wide range of sectors secure R&D tax relief. We were therefore delighted to play a part in PackCare gaining from its innovative flair and determination to solve a long-standing industry problem.
“Unfortunately, some people in business believe R&D tax relief is only for projects focused squarely on disciplines like chemistry or physics. In truth, however, the scheme is really there to encourage pragmatic, day-to-day innovations in areas such as product development and procedures.
“Many companies not currently claiming the relief which sought expert guidance would therefore be pleasantly surprised to discover they were, in fact, eligible.”
Brown Butler is an independent practice with a 90-year history of providing business advice, accountancy and taxation services to a wide range of organisations and individuals throughout the north of England.