randd uk believes the R&D Tax Credit scheme, administered by HMRC, is not so much an exercise in understanding the company’s finances, but more about understanding what is happening in a business. This includes an understanding from a shop floor perspective, which requires extensive knowledge of business processes and product developments. And we have proof that this concept works.
Recently, randd uk was approached by Steetley Dolomite Limited, a manufacturing firm based in Worksop, Nottinghamshire. Already working with their sizeable accountancy firm, Steetley was familiar with the R&D Tax Credit scheme, having claimed in excess £50,000 in the past.
Having seen randd uk’s website, the management team at Steetley suspected that they may not have maximised their R&D relief, and invited randd uk in to take a second look. In doing so, randd uk was able to detect a theme of development that had not been previously recognised by their accountants.
The differentiator between randd uk’s approach to other similar practices is quite straightforward. Traditional approaches tend to look at the management accounts, identifying cost elements that have been attributed to research and development. However, as most of the R&D Tax Credit is actually derived from standard overhead costs (such as wages, utility bills, materials, prototypes and subcontractors’ costs), the real key to success resides within the heart of the business’ activities. These are not often separated in management accounts as specific research and development costs.
Working alongside Steetley’s team, randd uk’s industry experts were able to ask the relevant questions and understand Steetley’s business. Through this, we were able to determine exactly which business activities qualify as research and development under the DTI guidelines.
And the result? randd uk were able to secure over £540,000 in R&D Tax Credits for Steetley during the same period previously claimed, a ten fold improvement.
R&D tax credits are complex and, at times, confusing. However, working together with our clients, randd uk’s will navigate you through this process. We certainly have the know how to do so. Apart from our experience and knowledge, we also come with an enviable record of all of our submissions being paid, with over £26 million (and rising) successfully claimed on behalf of our clients.