A number of our clients had previously not claimed R&D Tax Credits because they were unaware that the scheme applied to their sort of work. Some did not realize that their activities qualified as genuine R&D within the terms of the regulations. Others had not claimed as they were concerned about the work and complexity involved in making a claim. Typical myths concerning R&D claims include:
1. “All our development is carried out overseas”. “We don’t develop anything in-house”.
If the costs are incurred by a UK entity, then sub-contracted activities will qualify.
2. ” This whole process may take too long - I don’t have sufficient time to spend on this ”.
Our aim is to make the process as least onerous on your staff as possible. Typically we require a few hours with your staff to get all the information necessary for submitting a thorough and comprehensive claim. The average claim has produced a net cash benefit of £45,000.
3. “None of our work qualifies as R&D”. “The project was a failure and was aborted”.
This is a scheme that rewards endeavour not success. If a project is aborted due to overwhelming technological uncertainty and as such a solution cannot be found – it all the more proves how difficult it was to achieve a result or outcome in the first place.
4. “We can’t submit the R&D Tax claim because we haven’t paid any corporation tax”. We have made significant losses so we do not see any scope for an R&D Tax claim”
Loss making firms can use a claim to enhance their losses further, i.e. offsetting against future profits and corporation tax payments. Alternatively SMEs can surrender enhanced losses for R&D tax credits i.e. cash. Profitable companies can get R&D tax relief on their corporation tax.
Are you developing new or improved:
- Software solutions
What Qualifies as R&D?
- Improvements to existing products for enhanced performance / capability / efficiency
- Development of software systems or dealing with integration issues with legacy systems
Knowledge of your R&D work
The first task we undertake is to explain the scheme and to set out the sorts of work that qualifies. We enjoy meeting your designers, engineers, technical managers or software specialists. For us this is a key component of being able to draft a successful tax claim on your behalf.
We work with you to determine the exact nature of a company’s research and development activities over the last two financial years.
- What exactly have you developed?
- What exactly was the advance in technology that you have strived to achieve?
- Who was involved?
Our team has a combination of practical business and engineering experience drawn from working in industry and from having worked with many companies from different sectors in drafting successful tax claims.
Knowledge of HMRC’s requirements
Our knowledge of HMRC’s requirements means we are able to present a clear summary of the research and development work undertaken which sets out your case for HMRC. We are able to show clearly the advance in science or technology that was being sought. We know how to present and illustrate the technical information so that it is readable and informative for HMRC. We also know how to express the “scientific or technological uncertainties” that you had to address in your R&D work.
Presenting the key financial data
We have a detailed understanding of how best to present the financial information to HMRC as a succinct financial statement of the eligible costs. Our team is supported by accountants who are specialists in the R&D Tax Credits scheme.
Uncertain about whether your activities qualify?
Call today on 0207 470 8709, or email us at email@example.com
To see more about the SME scheme, please click here.
To see more about the Large Companies Scheme, please click here.