Luvo Financial is warning businesses that time is running out for some of them to claim for eligible R&D service or product development activities.

Under its R&D Tax Credit scheme, the government will only consider claims for activity going back two years from a business’ financial year end, as Luvo Partner Ian Batkin explains:

“Companies are able to make claims for financial support from the government’s R&D Tax Credits scheme for qualifying R&D activity that was carried out and completed no longer than two years before the date of the current financial year end.

Financial year ending 31st March

“So for those businesses with a financial year ending 31st March, they have only a few weeks in which to begin, progress and submit a claim for their product and / or service R&D activities carried out in their financial year ending 31st March 2017, or risk missing out on a legitimate financial reward for their innovation.”

The average R&D Tax Credit claim is now worth in the region of £60,000, and the nature of eligible product or service R&D activities that qualify for R&D Tax Credits is extensive, as Ian explains:

“More often than not, the work of science, life science and pharmaceutical based organisations would automatically qualify for R&D Tax, but there is a host of other less lab based activities that UK businesses are carrying out each day that will certainly represent a legitimate claim.

“If you are a manufacturer and have an ongoing strategy to constantly improve, refine and develop your products through research and experimentation, then this activity / cost would likely qualify for R&D Tax Credits.

“If you are creating new processes or ways of doing things, such as developing new software or manufacturing systems for your operation, this will likely qualify because it is deemed to be a step in improving a product or service offering.

“If you have modified a product or service in response to a customer’s specific need, that resulted in you modifying or adjusting a standard ‘off the shelf’ product line or service, then this could also be eligible for R&D Tax Credits, as would enhancements to how staff, production, sales or delivery of products or services have been undertaken,” he explains.

No obligation consultation

Luvo recently launched a free service to help companies identify whether their service or product development work is eligible for government financial support, as Partner Vicki White explains: “Our service covers a free, no-obligation, one-hour consultation with one of Luvo’s qualified advisers and R&D Tax experts, who will advise them if they have a legitimate, valid case to claim and, if required, support them in doing so.

“We will always straight-forwardly advise companies if their activity is eligible for R&D Tax claims, or not, and would urge businesses to act quickly to establish if they have a legitimate claim and begin the process now and ahead of their financial year end.”

More information

For more information contact Luvo Financial on Tel: 01902 244210, E: enquiries@luvofinancial.co.uk

R&D tax credits are a valuable government tax incentive for limited companies who invest time and money into developing new products, processes and services, or enhancing existing ones.

Luvo Financial, which is based near Wolverhampton, works with businesses and independent accountancy practices across the Midlands and elsewhere in the UK. Founded in 2015, Luvo’s Partners Ian Batkin and Vicki White are both qualified accountants.