Successful businesses function by reducing costs and driving innovation, especially in our turbulent economic climate. So why do so few businesses opt to claim R&D tax relief?
Accountancy In Europe and our partners have a proven track record in helping UK businesses make successful R&D tax relief claims.
Our collective insight on the processes and pitfalls behind tax credit applications can save small and large companies money, no matter what the industry.
If your business designates people, money and time to activities that further progress development in your field, then you could be eligible for R&D tax credits.
Contact us for a free consultation, or read about your R&D tax credit eligibility below.
WHAT IS R&D TAX RELIEF?
When it comes to saving on tax, R&D tax relief is the government’s most accommodating provision. The reason for this is straightforward: businesses that invest in R&D tend to apply that research to new projects. New projects often create new jobs, and those businesses put more back into the Exchequer in return.
Encouraging businesses to invest in innovation doesn’t just foster more creative projects; it also stands to attract the kinds of business that would most appreciate that R&D investment. Building an ecosystem that is kind to the fields of technology and manufacturing stands to support future industry, and contribute to the UK’s long-term success and cachet.
Moreover, the R&D tax credits scheme has been significantly improved since its inception. There has never been a better time to claim, and we can help you navigate the process.
HOW IT CAN HELP YOU
R&D tax relief is available to all eligible companies, but its nature depends on your business’ circumstances. These include:
- SMEs making a profit (therefore paying corporation tax)
- Relief is available as a repayment of corporation tax liability or preservation of losses, carried forward at the rate of £24.7 for every £100 eligible spend.
- Loss making SMEs
- Relief can be received as a payable cash credit, up to £33.35 in every £100 eligible spend.
- Larger companies
- A lower (but still significant) rate of relief up to £8.90 after tax.
DOES YOUR BUSINESS QUALIFY?
The point at which tax credits claims often seem to fall down is discerning eligibility. HMRC’s explanations can be difficult to decode, and many businesses seem to give up, perhaps assuming that paying for a tax relief service would negate the benefits.
According to HMRC themselves, the credit exists to help companies undertake projects that extend current industry baselines in science and technology, where the outcome is uncertain and the methods used are somewhat unquantifiable. This broad definition does not paint the clearest picture of who or what is eligible for relief.
The easiest way to self-assess a claim is to ask yourselves: have we used technology and research to formulate new tools, products or services? Have we made a tangible effort to iterate on our products using technology? Did we ever begin a project with a broad goal of improvement, but without a tangible sense of how it would be achieved?
HOW CAN YOU CLAIM?
The crucial part of a tax credit application is to highlight as much eligible research spending as you can. It follows that the more areas of R&D expenditure you can point to, the more relief you will receive from the tax authorities.
This is where we come in. By combining the services of a specialist R&D tax relief advisory firm with those of an accountant, we can manage the assessment, preparation and submission processes together. We speak your language and HMRC’s, assisting you in a process that may be unfamiliar or too time consuming to navigate.
WHY USE AN R&D ADVISORY SERVICE?
Our partners are both experienced and diverse, including a wealth of PhD, BSc and MSc qualified scientists and engineers across numerous different sectors. The Technical Analysts are not only experts in their specialist areas, but equally knowledgeable when it comes to the specifics of legislation.
If you think you may be eligible for R&D tax credits, please get in touch and a member of the specialist R&D advisory team will be in contact. Best of all, the assessment is free. If you don’t ultimately qualify for R&D tax relief, you won’t owe anyone a penny.
For more information on our R&D tax credit advisory services, don’t hesitate to get in touch.