Owing to the original nature of the work – in which they are often pushing boundaries with materials, structural engineering and digital architecture – NEWSUBSTANCE undertake research and development. There is risk of failure, resolution of technical uncertainty, and technological advancement in their field – all essential hallmarks that HMRC expect to see in an R&D tax credit claim.
In an all too familiar tale, they had been told by their accountant that they would not qualify for the government R&D incentive.
Our accountant thought it was for people in white coats, not us. Fortunately, we sought a second opinion from ForrestBrown who were able to identify significant qualifying activity. Patrick O’Mahony, Creative Director, NEWSUBSTANCE
One recent project was commissioned by Bestival – the four-day music festival held on the Isle of Wight – to construct the World’s largest disco ball. It was to be judged by The Guinness Book of World Records.
This whimsical project had some complex engineering issues to resolve: Hard shell or inflatable solution? How could they ensure it looked and behaved like a disco ball? How could they mitigate environmental factors like changes in air pressure and temperature?
This led to experimentation with materials, sensors and construction technique. Eventually, they cracked it and produced a record-breaking disco ball that was suspended above wide-eyed revellers on the last night of the festival. Six wranglers got it going before it completed four unassisted rotations to deliver the world record. In case you were wondering it was a whopping 10.33 metres in diameter. (As an aside, the project would likely have qualified for R&D tax credits even if they had not broken the world record, as achieving your intended outcome is not a requirement of the R&D incentive.)
Another high profile project was undertaken for the inaugural European Games held in Baku in 2015. In a beautiful addition to the opening ceremony, they engineered an interactive transformation of a barren desert landscape set into a lush meadow as an actress walked across it.
It involved designing and manufacturing 2,500 PVC tubes with bespoke grass and flower arrangements that could be raised and lowered. With their characteristically innovative approach they modified technology from the video industry to let them control each physical clump of grass like a digital pixel. The results were amazing and a fitting metaphor for the way in which the R&D tax credit helps the green shoots in our economy to thrive.
What we make are not things you can buy off the shelf. They are detailed structures, things most people wouldn’t know where to start on. The tax credit gives you an opportunity to fail a bit – gives a little more margin if something goes wrong and takes the pressure off our kind of project. Patrick O’Mahony, Creative Director, NEWSUBSTANCE