The Techgrants transformation fund is an innovative ‘no strings attached’ grant solution available to organisations looking to reduce costs across their digital transformation projects.
The fund is automatically made available by engaging Techgrants alongside any of our leading technology partners.
Even if you’re already in discussions with vendors around a solution; grant funding may still be provided retrospectively to reduce costs.
This fund is provided freely with no obligation for you to provide anything in return.
What to Expect
The process of applying and receiving the transformation fund is quick and easy. Once you have selected your preferred supplier Techgrants will outline how much funding is available in writing prior to any contract signature.
Once contracted with your chosen vendor Techgrants will issue a confirmation document. This document confirms the exact amount of funding to be received, along with options on how you would like to receive the payment, including charitable donations.
Once signed and returned, you will receive the full transformation fund typically within 90 days (no more than 120 days) of the initial vendor contract signature.
Stages of Funding
1
Select and contract directly with preferred supplier
2
Complete and return our 'Transformation Fund' confirmation document
3
Receive full transformation fund in full within 90 days
Funding Timeline
Confirmation of funding amounts
UCAdvisor will confirm exact funding amounts you can expect to receive from each vendor.
Funding Confirmation Document
You will receive a confirmation document with final figures and next steps on how to receive the transformation fund.
Funding Received
UCAdvisor releases funds to your nominated accounts.
Testimonial (Optional)
A case study or testimonial may be requested after implementation, but is entirely optional.
Techgrants can be engaged
Project Identified
A digital change initiative has gone live as a project.
Information Gathering
Internal information gathering is underway to determine solution scope and requirements.
Potential Vendors Identified
Potential solutions or suppliers meeting established criteria have been identified.
Vendors Engaged
You are actively engaging vendors to meet your needs and requirements.
Down Select
You have identified and shortlisted your preferred vendors.
Contract Signature
You have awarded the contract to the winning vendor after agreeing on terms.
Deployment
The solution is actively being deployed organisation-wide.
Go Live
The project is complete, and the solution is now live organization-wide.
Accounting for Grant Income
The Techgrants transformation fund is issued as a grant payment and as such is accounted for in the same way. If you’re planning to use the transformation fund for expenditure that would be recorded in your profit and loss account, then it will typically be recorded as income.
If you are planning on using the funding for specific expenditure in the future, then the payment can also be deferred and released to the profit and loss account at the relevant time. This can also apply if the funding is to be spent on any equipment or other fixed assets, typically the funding is deferred and released to the profit and loss account to match with the depreciation of the grant purchased asset.
Corporation Tax and Income Tax
As grants in the UK are typically treated as taxable income, it means that the transformation fund will be treated in the same way. If you plan to use the funding for expenditure that would normally appear in your profit and loss account and can defer the income (as above), then there will be no tax liability on the profit as this as it is matched with its intended expenditure. This means both income and expenditure will cancel each other out and therefore not affect your profit or tax figures.*
VAT on Grant Income
Grant income generally sits outside the scope of VAT, therefore no VAT is payable when you receive the funding, however you should still able to reclaim VAT from any asset paid for via the transformation fund, providing it lies within the ‘normal’ VAT rules.
Accounting Steps
Recording a grant payment in your accountancy software can be done in 4 simple steps.
- Open up Chart of Accounts
- Create a new Account Type (Other income)
- Label the account “Transformation Grant”
- Set the Tax Code to – No VAT
Then simply reconcile the funding with this account once it has been released.
FAQ’S
How do you make your money?
Our revenue model involves receiving an ongoing payment from the vendor that is selected, for the duration of the contract. The exact payment amount can vary depending on the specifics of each individual contract.
Do we have to sign anything with you?
You do not need to sign any contracts with us. Instead, you will directly contract with your chosen vendor.
What can the funding be used for?
The transformation grant that Techgrants provides can be used for a wide range of purposes. Some of the most common uses include reducing upfront costs, refreshing hardware, covering early exit fees, financing other internal projects, and even donating the funds to a charitable cause. Ultimately, it’s up to each client to determine how they would like to allocate the grant, based on their unique business needs and goals.
Would we get cheaper pricing if we went direct?
The UK channel model is structured to ensure pricing parity across the board. Therefore, pricing for products and services remains consistent, regardless of whether you use Techgrants or not. This means that you can still directly negotiate with your chosen vendor for all costs, without incurring any additional charges from Techgrants.
How much funding will we receive?
Exact funding amounts vary from project to project; however we have a number of funding calculators on our site that will be able to give you approximate amounts based on the various criteria. We will confirm final and exact funding amounts prior to any signature with your chosen vendors.
Where does the funding come from?
To provide funding for our users, we collect and redistribute commissions from within the UK channel market. These available commissions are used to provide a transformation grant that can be utilised in a variety of ways to suit the needs of the user’s business, such as deployment or contract fees, new hardware, other projects, or even as a charitable donation.
Can we just use you for the funding?
Absolutely.
Is this really all free?
Yes, we are completely free to use.
