We covered an arguably slightly “sensational” article in the Times on R&D claims by football clubs. That appeared to cast shade on their validity. We made the point that each claim must be judged fairly on its merits.
Congratulations, to The Guardian for looking closely at the facts about one clubs claim in a good article “Brentford FC received £3.23m in public money for research and development”.
Brentford Football Club has established itself as a leading innovator in sports science, medicine, training and tactics. The Guardian article presents clear evidence supporting the clubs claim, noting that Brentford received 3.23 million pounds in tax credits under the research and development scheme, and had published academic papers. Over the past two years, the club has invested approximately 16 million pounds in its research department. The investment has resulted in a series of academic studies on training loads, running intensity and positional play. These findings have provided valuable insights that contribute to the clubs competitive performance in the Premier League.
The research and development tax credit scheme is open to any company subject to corporation tax in pursuit of their trade that is seeking an advance in knowledge or capability in a field of science or technology. The scheme is designed to reward innovation and measurable progress rather than requiring the research to be made public. It is important that football clubs are treated fairly as any other claimant. The focus is on the advancement achieved and the tangible benefits derived from the research, which in the case of Brentford, appears to have had a direct impact on their performance on the pitch.
It is wrong to attack any business for making a perfectly legal R&D and legitimate R&D claim. It is permitted for any UK company subject to corporation tax to claim with no restriction on the type of company it is the R&D activity that must qualify. But if there was a restriction, would it be on something as important to the UK economy as football? We are best in the world at very little but most experts globally would acept the Premier league is the best.
For clubs and businesses navigating the complexities of R&D tax credits, understanding the true requirements of the scheme is essential. We invite all stakeholders to explore the facts and consider the value that strategic research investment can bring to the world of sports and beyond. For further guidance on R&D tax credits or assistance in ensuring compliance with the relevant regulations, please visit our contact us.
Christopher Toms MA MAAT Compliance Director RandDTax