What is Transformation Grant Funding? An Introductory Guide

As the world continues to evolve, with businesses embracing new workplace strategies like hybrid and remote work, and customers demand more innovative service methods, digital transformation is the key for ensuring companies can survive and thrive going forward.

According to Gartner, Digital Transformation is now an organisational priority for 87% of senior executives. A further 27% of managers believe transforming their business is a “matter of survival”.

Whether it’s shifting operations into the cloud, leverage “SaaS” solutions for contact centres and unified communications, or simply upgrading technology, most businesses have a growing need for transformation. The challenge is in finding the right funding to enable this evolution.

At a time of economic upheaval, not every business will have the resources available to power a digital update. That’s where the UCAdvisor Digital Transformation fund comes in.

What is Transformation Grant Funding?

The Digital Transformation fund is a free form of financial support available to companies searching for ways to reduce the costs of their technology initiative. Designed to reduce the barriers to innovation and expansion, this fund is automatically available to all customers who engage UCAdvisor when purchasing new solutions from our listed technology providers.

Even if you’ve already begun discussions with vendors, UCAdvisor can still assist you retrospectively to ensure you have the right amount of funding for your new project.

Our transformation fund is powered by the commissions and bonuses we receive from our suppliers. As a part of the UK referral channel network, we’ve developed a unique process which allows us to bundle our commissions into grant payments to share with all of our customers.

The funding you receive has no limitations or requirements on how it needs to be spent, provided you’re investing in digital transformation. Our partner customers have already used our funding support to pay for professional services, early exit fees, and even charitable donations.

There’s also no specific upper limit on the amount of funding you can receive. The exact funding amount attributed to your project will be based on the contract you sign with your chosen vendor. However, the UCAdvisor team does ensure all clients are aware of their funding options before any final documents need to be signed.

How to Apply for a Transformation Grant

Often, applying for funds and financial support can be a complex process which adds to the strain of starting your digital transformation endeavour.

Fortunately, the UCAdvisor transformation fund isn’t your average grant. The process of applying for and receiving funding is as straightforward and simple as possible, so you can spend less time worrying about cash, and more time building your business.

Once you choose your preferred supplier from one of our partners, we’ll give you an insight into how much funding is available from each of your qualifying vendors. Once you choose your final solution and sign a contract with your preferred vendor, UCAdvisor will send you a funding application document, complete with insights into how much funding you’ll receive, and options for how you’d prefer to receive your payment.

Often, applying for funds and financial support can be a complex process which adds to the strain of starting your digital transformation endeavour.

Fortunately, the UCAdvisor transformation fund isn’t your average grant. The process of applying for and receiving funding is as straightforward and simple as possible, so you can spend less time worrying about cash, and more time building your business.

Once you choose your preferred supplier from one of our partners, we’ll give you an insight into how much funding is available from each of your qualifying vendors. Once you choose your final solution and sign a contract with your preferred vendor, UCAdvisor will send you a funding application document, complete with insights into how much funding you’ll receive, and options for how you’d prefer to receive your payment.

How to Account for Grant Income

One of the biggest challenges customers face when applying for transformation funding, is figuring out how to account for the cash they receive when it comes to paying taxes.

If you successfully apply for a transformation fund with UCAdvisor, the cash you receive will be accounted for as a grant payment. However, if you’re planning on using the transformation fund for purchases which would normally be recorded in your profit and loss account, it will simply be recorded as income.

If you’re planning on using your transformation fund for a specific expenditure in the future, the payment can be deferred and released into the profit and loss account at the relevant time. This will also apply if you’re going to be spending your funds on any equipment or fixed assets. Funding can be deferred and released to the profit and loss account to match the depreciation of the purchased asset.

When it comes to both corporation and income tax, it’s worth noting all grants in the UK are recognised as taxable income. If you plan on using the funding for expenditure appearing in your profit and loss account and can defer the cash as mentioned above, you won’t have any tax liability on the money, as it will be matched to its intended expenditure. This should mean the income and expenditure will cancel eachother out, and not affect your tax or profit figures.

If your funding is spent on transformation equipment, your funding won’t be taxable, but there will also be no capital allowance available for the equipment expenditure.

Notably, for VAT registered businesses, grant income like the UCAdvisor transformation fund sits outside of the scope of VAT. There will not be any VAT payable when you receive the funding, but you can still reclaim any VAT from the assets or equipment you pay for with your fund.

Answering Your Questions about the Transformation Grant

Grants and funding can often seem too good to be true, and leave you with a lot of questions about how you’re getting your money and why. Here are some of the most common questions we get about our transformation fund to help you out:

Would it be cheaper to go direct to a vendor?

The UK channel model is built around price parity. This means the pricing for your assets would remain the same either way. Even if you receive the transformation fund, you can still try and negotiate with your vendor for a cheaper deal.

What Does UCAdvisor Get in Return?

We don’t charge anything for access to the transformation fund, nor will you need to pay a fee to speak to our technology specialists and consultants for guidance. We make our money by receiving recurring payments from successful vendors. The amount we receive is based on the assets you purchase. We may also request a joint case study from you once your project is completed, but you’re under no obligation to share this information with us.

Can you work within specific guidelines and frameworks?

We can work within RFP/RFI guidelines if you let us know what vendors you want to invite to bid. UCAdvisor can also work within UK GOV frameworks, provided this is supported by at least one of the vendors we have as partners.

Ready to Sign Up?

Digital transformation is a must for most businesses today, but that doesn’t make it easy to pay for.

If you’re struggling to find the funding to support your company’s evolution, we can help. Reach out to UCAdvisor today to learn more about our transformation funding options, and cut the costs of your business growth.