MORE than 20 jobs have been created at an Ilkley-based manufacturing firm which has extended its research and development operations.

Tubular metal products company Olicana, which offers a tube bending design, development and manufacturing service to multiple industries worldwide, used the expertise of its accountants to help fund the expansion by claiming special tax reliefs on its products and manufacturing methods.

The company has also built a new loading bay and cutting shop at its East Parade site to meet rising demand for its products. In the last 12 months Olicana has invested in a new state of the art tube laser cutter, two new robot welding cells and a new CNC vertical machining centre.

Rob Durrant-Walker and Matthew Grant, tax experts at Yorkshire accountancy firm Garbutt +Elliott, worked with the company to help it save more than £60,000 in tax in Patent Box, research and development relief and land remediation relief against its corporation tax liabilities.

Rupert Pearson, Olicana managing director, said: “We have seen a significant increase in orders during the past year which has been fantastic but we had to ensure we were in a position to deal with the surge in orders.

“Garbutt + Elliott has been essential in saving us substantial tax through their expertise and practical business sense. The tax savings we have benefitted from have been ploughed back into the business to fund our expansion plans."

Patent Box was introduced in 2013 to encourage innovative industries to invest, grow and create new jobs by allowing companies to pay a lower rate of corporation tax on profits from patented products and processes.

The R&D scheme provides an effective rate of tax relief of 46 per cent on qualifying costs rather than the standard 20 per cent, whilst Land Remediation relief offers 30 per cent tax relief on capital expenditure in clearing land affected by toxins. In Olicana’s case, it enabled asbestos to be safely removed from old buildings as part of the factory expansion work.

Rob Durrant-Walker said: “These schemes are an attractive proposition for many businesses and we are working with our clients to ensure they maximise the opportunities available. It is unusual to have three relief schemes for one client simultaneously though.

“Patent Box is still relatively new and is an untapped way for many companies to reduce tax liability, particularly those involved in manufacturing.

“It is a specialist area and businesses should take guidance when considering putting in a claim but as Olicana discovered, the tax that can be saved can be extremely worthwhile in helping a company’s cash position.”