What are R&D Tax Credits?And how can they benefit your business?
What are R&D Tax Credits?
Introduced in April 2000, Research and Development Tax Credits are a government incentive for limited companies who dedicate time and investment into the research and development of new products, processes and systems / services.
It is a way of reducing corporation tax liability, or where there are no profits – a payable cash credit relative to their eligible R&D expenditure.
If you’re wondering whether an application is worthwhile, in April 2015, the government increased R&D Tax incentives for SME’s, to 230% of qualifying expenditure, up from the previous 225%. In October 2016, further support was pledged by the Government to CBI, of £2bn of funding being invested in R&D by 2020.
In the UK the average claim for an SME is nearly £60,000!
Are you eligible?
Many businesses don’t even realise they are eligible for R&D Tax Credits and miss out on the huge financial benefits available to help them.
In addition to the obvious ones, i.e. companies who either undertake scientific R&D work or have R&D Departments, we have successfully supported companies in the following sectors to make claims:
Click here to find out more about your possible eligibility to claim R&D Tax Relief.
- Testing & Measurement Equipment
- Conveyor Systems
- Games Development
- Construction Industry suppliers
- Development of e-commerce Systems
- Assembly and Design of Transducers
- Software Development
- Electrical and Electronics
- Web Design
- Autosport Engineering
- Control Panel Systems
- Food and Drinks
- Systems Integration
- Training Providers
- Medical Electronics
- Professional Services
- Engineering (process and bespoke, mechanical and electrical)
Anybody can submit an R&D Tax Claim, but to be successful and get the maximum benefit you need experience and detailed knowledge of HMRC guidelines. That’s where we come in…
Identify qualifying expenditure
After initially confirming eligibility, we spend time identifying qualifying Research and Development expenditure, according to HMRC rules. As we are specialists, we eliminate the chances of error with regard to including incorrect expenditure which fails to qualify as R&D – something that can raise an enquiry with HMRC if not done correctly.
Calculate qualifying costs
We calculate and maximise qualifying costs against which you can claim. Without specialist advice, there could be a tendency to overestimate / underestimate qualifying costs. With detailed knowledge of what does / does not qualify, we can save you time and ensure that you aren’t over / under claiming.
Prepare a Technical Justification Report
We prepare the required Technical Justification Report, that accompanies the R&D claim (amongst other documents). With our extensive knowledge and experience, we ensure that this is written and delivered in the way HMRC requires.
We will conduct a fact finding exercise to assess your eligibility before pulling together your claim, if everything looks as it should, we’ll take all the relevant facts and figures then pull together a claim for you – simplifying the whole process and saving you valuable time. We offer competitive rates with a second to none service.
There is nothing to pay if a claim isn’t successful, but with our 100% success rate – you really do have nothing to lose.
Our contingent fees are one of the most competitive in the sector, and are reimbursed in the unlikely event that the claim is denied by HMRC. There is nothing to pay until an engagement has been formally agreed and it’s success based – ‘no-win-no-fee’! We undertake the vast majority of our work via referrals from accountants.
where tax saving is over £10K
where tax saving is over £150K