Find the hidden gems that could save your business millions

A gold rush is taking place in the watchmaking and jewellery sector that is saving businesses millions. For many executives, the R&D tax credit scheme is a silver bullet for their company’s finances, helping to boost after tax profits and inject additional capital to reinvest and grow.

Despite the slightly misleading name, In the course of their day-to-day work most watchmakers and jewellers will undertake the types of activity that qualifies for the incentive, it’s just a case of knowing where to look. That’s where Invennt come in, as the leading specialist tax consultant for the luxury industry, our consultants help businesses find and itemise the hidden gems of innovation in their product development and manufacturing operations.

Regrettably, despite recent improvements, claims in the industry remain low relative to its size. Yet fundamentally, jewellery is a form of microengineering and casting a gallery rail for an engagement ring or an arbor for a luxury watch is really no different to casting the components for a scientific device, which begs the question, why the differential in claims? It is just a case of knowing where to look and what to look for.

What are R&D tax credits

What are R&D tax credits?

Introduced by the UK Government in 2000, R&D Tax Credits are designed to encourage innovation by allowing businesses to reclaim some of the money they have spent on developing new – or improving existing – products, services and process.

The opportunity for watches and jewellery brands

Loss-making SMEs can claim R&D Tax Credit repayment up to £33.35 for every £100 spent on qualifying R&D expenditure and profit-making SMEs can claim R&D Tax Relief which reduces their corporation tax bill by up to £24.7 for every £100. Large companies can claim tax repayment of 13% of qualifying cost

But what constitutes R&D?

Any project that seeks to; Extend overall knowledge or capability; create a process or service that extends knowledge or capability; make an appreciable improvement to an existing process, material or device; or use science or technology to duplicate the effect of an existing process, material or device in a new or improved way is classed as R&D.

What qualifies?

If you solve technical challenges (or pay your staff to solve technical challenges), you probably qualify for R&D tax credits. The examples of qualifying expenditure are virtually limitless.

Here is just a small selection:

  • Electroforming and die forming

    Using novel digital methods to produce dies for press forming of jewellery or watch components

  • New soldering methods

    The use of TIG welding or laser soldering when applied in new contexts can qualify for tax credits

  • 3D printed casting models

    The use of new 3D printing techniques to create casting models for metal components

  • Enamelling processes

    Application of vitreous enamelling to improve durability or comfort

  • Automated laser cutting

    Using digital tools to automate laser cutting, shaping and polishing of precious stones and glass

  • Composite materials engineering

    Experimentation with composite materials and alloys to achieve greater durability or efficiency

Next steps

Download the brochure or contact us to book an exploratory discussion to evaluate your claim.