The renting and leasing sector within the UK is growing across a multitude of subsectors. Due to an increase in goods and services that can be rented in the 21st century, the sector is rife with potential for research and development. There is a rising demand for goods and services that can be rented/leased, caused by several factors. Firstly, the rising costs of specific goods such as mobile phones has resulted in the inability to purchase outright, leading to a demand in the ability to lease the product instead. The renting and leasing of goods also allows greater flexibility for consumers, which can be evidenced within the housing market.
What is the Renting and Leasing sector?
In simple terms, the renting and leasing industry involves the goods and services that are available to rented and leased to consumers. A lease is a contract outlining the terms under which one party agrees to rent an asset—property, for example—owned by another party. Some of the most popular assets that are leased within the UK include:
An example how large an individual area of the leasing sector is the UK’s car rental & leasing industry, which is projected to be £15.4 billion in 2022. The rise of the internet over the past 20 years has dramatically accelerated the ability for goods to be leased, which is one of significant factors of the industry’s growth.
What is R&D within Renting and Leasing?
The growth of the renting and leasing industry has seen a rising demand for advancement within the sector. With more goods and services available to be leased, there is a necessity for the industry to become more sophisticated and efficient, which can be achieved through innovative R&D projects. Other demands for R&D within leasing arose during the coronavirus pandemic. Common practices within certain markets became disrupted during the various lockdowns in the UK – providing a necessity for innovation to find solutions to these problems. Here are some examples of areas within renting and leasing that have seen innovation:
- Novel means of digitising the management and maintenance of properties
- Automation of tenant requests, through algorithms that bypass the need to contact estate agents and experience long wait times
- Contactless collection of rental vehicles through mobile technology
- AI technology that helps property owners become paired with prospective rental tenants by analysing tenants credit history
- Virtualisation of practises such as house tours, increasing accessibility of properties for tenants who are not able to visit in person
How R&D tax credits can help your renting and leasing company
There are many benefits to be gained from the R&D tax credit scheme, however you may be curious about how your own company can be eligible.
There are many stages throughout an R&D project, which each involve varied activities that may or may not be eligible towards your claim. Some expenditure within projects that are eligible for tax relief include:
- Building and testing of prototype models that contribute to the final product, such as test version of software systems
- Salaries of staff who directly worked on the project, such as technical design staff
- Any training costs for staff required to work on the project
Whether your company is big or small, the benefits can be significant. The tax credits can help make future R&D projects become more affordable, whilst providing a budget boost to be used in other areas, such as the hiring of staff that can help grow your future.
The next step
Our team at Kirby and Haslam are specialists when it comes to R&D tax relief. If you feel like your company could be eligible for R&D tax credits, then do not hesitate to enquire – our team of experts will help you along every stage in the process.