Think R&D, automatically think lab coats, goggles, and big pharma companies. Right? Wrong! Luvo’s Vicki White (pictured) explains that the government’s R&D Tax Credits scheme is designed to reward innovation in every corner of industry.
Despite the government’s efforts to support and recognise innovation and research and development across every facet of UK industry, less than 10% of small and medium-sized companies with a legitimate claim for R&D Tax Credits have actually made a claim.
Whilst the government launched its R&D Tax Credits scheme more than 18 years ago, there remains huge misunderstanding of what actually qualifies for the available financial reward and benefit. With the average claim being worth in the region of £60,000, this means that a huge number of SME’s are missing out, not least as this financial support could support ongoing / future product and service development activity / cost.
Certainly, much of the work carried out by science, life science and pharmaceutical based organisations would automatically qualify for R&D Tax, but there’s a host of other less lab based activities that UK businesses are carrying out each day that, whilst perhaps less obvious, will certainly represent a legitimate claim.
So, what might these activities look like?
If you are a manufacturer, whether in the engineering sector, or even food and drink, and have an ongoing strategy to constantly improve, refine and develop your products through research and experimentation, then this activity / cost would qualify for R&D Tax Credits.
Creating new processes / ways of doing things:
If you are a business developing new software or manufacturing systems for your operation, then this will qualify for R&D Tax Credits. As this would be deemed to be a step that creates improvements to how you do things, and in turn, improve your product or service offering, this is very much activity that is eligible to be claimed for.
Enhancing existing systems:
Operationally, all businesses will have an eye on how to improve day-to-day efficiencies, capacity and overall performance. Whether this is enhancements to how your staff, production, sales or delivery of products or services is undertaken, there’s a good chance that this qualifies for R&D Tax Credits.
Not all products or services that are ‘off the shelf’ will exactly match what your customers and clients are looking for. If in response to a customer needing a modification or material adjustment to your standard product or service line, that you will of course want to respond to for the overall benefit of the customer relationship, your client service standards, and ultimately your bottom line, this will also almost certainly mean you will qualify for R&D Tax Credits.
If you would like to discuss your organisation’s work to establish if it is eligible for R&D Tax Credits, Luvo offers a free service to help with this. In our free, no-obligation, one-hour consultation, one of Luvo’s qualified advisers and R&D Tax experts will advise you if you have a legitimate, valid case to claim. Luvo is a reputable independent specialist firm that works only with businesses that are eligible for R&D Tax Credit claims (as well as Patent Box) and, as such, will only support the most valid of claims. We are proud of our 100 percent success record in making R&D Tax Credit claims for clients, and will always advise companies if their activity is eligible for R&D Tax Credit claims, or not.
Please get in touch to find out more.