The Internet of Things (IoT) is altering the world in which we live in today. From changing how we drive, to how we make payments. IoT have improved a variety of elements in our daily activities. Improving simplicity, efficiency and cost savings through increasing control and in monitoring of various devices and applications.
It is these developments which carry high risk and undertainty, but on the other hand have the potential commercial success. Luckily HMRC’s R&D Tax Relief can be utilised to reduce the commercial and financial impact of these projects.
R&D Tax relief can reduce the cost of development and utilisation of IoT by up to 33%.
What is IoT?
IoT is the use of devices (‘things’) which have sensors and internet communication technology embedded within them. These devices can often communicate with each other through the internet. Such devices often refer to anything that is used in day to day activities, for example:
- Vehicles
- Machines
- Buildings
- Plants
- Goods
Due to the rapid developments in technology over the past century, the full potential of IoT has not yet been achieved. This has influenced companies of all sectors and sizes throughout the UK to actively seek an advancement in technology, to turn IoT into a reality.
Where to find IoT?
A range of day to day activities include IoT developments, for example:
- Improving the production of a factory through developing new systems.
- Monitoring personal health through mobile apps, or watches.
- Mobile tracking devices for tracking deliveries, or taxi’s.
- Providing people with real time updates on where to park, train and bus journeys.
- Security systems/cameras connected to mobile phones.
Future development of IoT technologies will be rapid in a number of areas such as; the healthcare sector, supply chains and smart cities.
However, the largest forecasted growth area is within the automotive industry. The industry is forecasted to grow as much as 751% by 2024, where there will be approximately 55 million IoT connections. The anticipated growth of IoT illustrates the huge commitment from companies invest in a significant amount of time and resources in developing IoT technologies. It is these companies that could be eligible for R&D tax relief.
For More Information on R&D Tax Relief Contact Today
In conclusion, IoT is an ever-expanding sector where companies are conducting R&D to be at the forefront of the industry. It is these activities that our specialists are able to identify, enabling you to maximise relief and reduce costs by up to 33%, through successfully claiming R&D tax credits or relief.
We would urge you to contact our team today for a free of charge consultation to examine if your R&D projects qualify.
