Unsure if your business could qualify for a Research and Development Tax Credits claim? Often the biggest problem for companies is recognising what activities are eligible for the Research and Development Tax Credit scheme. Our team has a diverse business background, supported by accountants well-versed in Research and Development Tax Credits claims. This expertise allows us to easily highlight areas of process and product development that our clients (and/or their accountants) may have overlooked as qualifying for research and development tax incentives.
WHICH TYPE OF SCHEME WILL YOU BE APPLYING FOR?
There are two Research and Development Tax Credits claim schemes which HMRC operate: the Small and Medium-sized Enterprises and the RDEC Schemes. Companies can claim relief on their research and development activity through either scheme, depending on their size, turnover and balance sheet.
Small and Medium sized Enterprises (SME) R&D Relief
A company is usually considered an SME for Research and Development Tax Credits purposes if they have fewer than 500 employees.
Research and Development Expenditure Credit Scheme (RDEC)
RDEC is for larger companies who exceed the SME threshold. So it’s best to speak to us about this so we can clarify your company’s position.
WHICH INDUSTRIES CAN CLAIM R&D TAX CREDITS? – Any!
A UK limited company from ANY industry can claim R&D Tax Credits, as long as they are carrying out research and development activities that are eligible under the scheme.
IS IT TIME FOR YOUR REALITY CHEQUE?
A ‘reality check’ is an occasion that causes you to consider the facts about a situation and change previous opinions, ideas or beliefs. You might also think of this as a ‘light bulb’ moment.
A randd uk ‘reality cheque’ is the point in our conversation with a new client when they suddenly realise that they do indeed have the basis of a successful Research and Development Tax Credit claim (in spite of possible initial scepticism) and that this is likely to lead to them receiving a large cash payment from HMRC in the near future. Then it really does become a ‘Reality Cheque‘.
OUR R&D TAX CREDITS CLAIM PROCESS
Think it’s not for you? randd uk specialise in R&D Tax Credit claims and find it takes a straightforward chat of about an hour over a coffee to dispel that common misconception and identify the significant financial benefits for yourself.
When speaking with businesses, there’s always a ‘Reality Cheque’ moment. It typically comes after we’ve been discussing a product, system or process they have spent money developing, improving or testing which much to their real surprise and delight, we believe could be the basis for a claim.
MEET OUR R&D TAX CREDITS SPECIALISTS
If you believe you and your company can qualify for research and development tax credit relief, contact our team of tax credits specialist today by calling us on 01332 477 070 or by leaving one of our tax credits specialists a message via our online contact form.
Seems easy…so why don’t many businesses make an R&D Tax Credit claim?
Excellent question. Simply put, people are unaware they are the kind of business that qualifies for R&D Tax Credits or of how much credit they can claim. This programme is coordinated by a dedicated R&D Tax Credit claim team within HMRC. Whilst UK government remain committed to ensuring that UK companies receive a full share of the funds available, the UK, has in fact, lagged behind its European neighbours in embracing this opportunity. This is a trend we are working to reverse.
DON’T MISS OUT ON YOUR R&D TAX CREDITS
The following are the most frequent scenarios we encounter. These not only demonstrate the typical ‘advisory mindset’ within UK companies, but also the under-subscribed nature of the UK market and the benefits of using a specialist practice like us to process your company’s R&D tax credit claim.
Several companies have been told by their accountants that they would not be able to claim, only to discover later that they were entitled to six-figure sums from HMRC. Yes, six figures.
The manager of a manufacturer of small electronic systems company, who has claimed around £35,000 under this scheme, said accountants were too passive and dealt with history only, not the future. Too many accountancy firms are not proactive in trying to help companies maximise the benefits of their expenditure. Good thing we are.
One manufacturing company has received £100,000 over the past five years in R&D Tax Credit payments, despite their auditors initially advising that the business did not qualify for the scheme. The company, which employs 40 people, applied only after being approached by us to help make their R&D Tax Credit claim.
The company secretary said the accountancy firm it employs still doesn’t really understand how the business is getting the money back, adding: “it’s not a part of their normal exercise, or what accountants normally do.”