What are R&D tax credits?
Research and Development (R&D) tax credits are intended to encourage UK companies to invest in innovation.
R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology through the resolution of a scientific or technological uncertainty.
Qualifying expenditure on R&D activity can be converted into a R&D tax credit. This can benefit both profitable and loss making companies.
We prepare R&D tax credit claims and supporting documents for submission to HMRC and will guide you through the process of claiming tax reductions, repayments or tax credits.
Sometimes when our new clients hear the words ‘Research & Development’ they think of white coats, test tubes or cutting-edge software development. They often make the assumption R&D does not occur in their sector. Quite often this is just not the case.
Many companies out there are regularly solving technical problems using innovative solutions and they are therefore entitled to claim R&D tax credits.
Eugene O’Neill CTA, ACA
Managing Director
Does my business qualify?
In broad terms, to qualify you must:
Be a limited company subject to UK Corporation Tax;
-
- Have developed new products or processes; or
- Have tried to improve existing products or processes.
Have sought to overcome a “scientific or technological uncertainty”; and
Incurred expenses in the process.
Discussion around the “scientific or technological uncertainty” should be sought with an R&D expert.
Speak to us for a Free Consultation.
Are you missing out on R&D Tax Credits? Get in touch today to speak to one of our experts.
Lets get startedWhat are the benefits?
Qualifying companies can benefit from this incentive in the form of a:
- repayable tax credit,
- repayment of previously paid tax; or
- reduction in future tax liabilities.
| SME Profit Making | SME Loss Making | RDEC (Large Company) | |
|---|---|---|---|
| Tax Saving - Up to | 0% | 0% | 0% |
| Example R&D cost | £0 | £0 | £0 |
Tax benefits differ between companies which are either claiming as an SME or a Large Enterprise (RDEC).
Case Studies.
How to claim?
Our process consists of Six Key Steps.
Introduction
Consultancy team introduction and key claim stakeholder identification. Previous R&D claims assessment and delivery timeline agreed.
Technical discovery
Exploration of potential areas for optimising R&D qualifying activity, detailed project examples and discussion, identification of all eligible projects and cost categories.
Technical scoping
Review and discussion of all eligible projects, selection of key projects for claim substantiation.
Financial Discovery
Exploration of expenditure categories, R&D project expenditure data provision, financial document provision.
Claim package
Compilation of technical and financial documentation, internal quality audit and resolution of queries.
Submission
Final documentation sign-off, tax benefit option agreement, detailed submission guidance and additional submission support.
Discussion around the “scientific or technological uncertainty” should be sought with an R&D expert.
What industries qualify?
The R&D Credits scheme is open to any UK company in any sector. We have seen claims in many industries, some of which are:
Agriculture
Recent HMRC data revealed that companies in the UK agriculture sector made up less than 0.5%...
Software / IT
“Software is a great combination between artistry and engineering” Bill Gates
Manufacturing
R&D activities and solutions in manufacturing.
Construction
Are you working on challenging projects with construction?
Engineering
Are you searching for innovative solutions to technical challenges
