Your Company could be eligible to claim
R & D Tax Credits
Research & Development Tax Credits is a UK tax incentive scheme created by the UK Government to encourage companies to invest into R&D. Companies can lower their Corporation Tax bill, or claim cash back as a proportion of their R&D expenditure.
If a company is creating new products, new processes and services, or modifying existing products to improve performance there is a good chance that the company
qualifies for R&D Tax credits. R&D can take place in any sector regardless of company size. It could be in everything from a bakery to a chemical engineering company, construction to software development. .
The expertise of an R&D professional is the ability to identify qualifying activities by talking to the client. R&D exists in every single sector, however it does need technically skilled people to identify and maximise
We can help you if:
R & D Tax Credits - Key Points
- This scheme is fully approved and supported by HMRC.
- A separate unit within HMRC has been set up to assess the claims.
- Businesses can claim for R&D activities for the previous 2 years and then each subsequent financial year
- The scheme is for UK based Limited Companies, either profit or loss making.
- Our in house specialist R&D tax credits consultancy has maintained a 100% success rate.
- We work on a no-win-no-fee basis, and only charge you when the claim is fully approved by HMRC.
- The claims process has been refined to quickly identify qualifying elements.
- Our aim to process client claims within 4–6 weeks, unless there are circumstances outside of our control.
- We work alongside a client’s existing accountants and not “in place of”.
What is R & D
‘R&D’ is not R&D as you may perceive it to be; you don’t have to employ scientists, work in laboratories, or do things that no one else in the world is doing. R&D from an HMRC perspective means some sort of scientific or technological development must be taking place whether that’s for internal purposes (e.g. development of software / new internal processing system), or whether the company is developing products to sell in the open market.
The advance can simply be an appreciable improvement on existing technology; it does not necessarily have to be brand new, blue-sky or involve men in white coats.
How much can a Limited Company get back from HMRC?
• Depending on the Limited Companies profitability the tax credit is paid as follows:
Profit making company: for every £1 spent on qualifying expenses, HMRC give a credit of 24.7p
Non-profit making company: for every £1 spent on qualifying expenses, HMRC give a credit of 33.3p
Following the Chancellor’s Mini Budget on 17th November 2022, rates will be reduced from April 23.
R&D Qualifying Activities
Step 1 – Discovery and feasibility stage:
- Ideas capture – Those who have the brainwave, or field sales engineers who come up with client requirements –Qualifying.
- Technical feasibility – Gathering of technical information, internet research, research of peer studies, material research and selection – Qualifying.
Step 2 – Concept and design stage:
- Project team – Those involved in the project both strategically and directly –Qualifying.
- Proof of concept – Technical design and analysis of ideas – Qualifying.
- Modelling design – CAD build and initial modelling; may include subcontracted work at this stage – Qualifying.
- Pre-testing – Testing the design and ensuring that all bases covered – Qualifying.
Step 3 – Prototype and testing stage:
- Prototype / Alpha or Beta copy – Direct involvement by R&D team / developers / engineers / scientists / testers –Qualifying.
- Further prototype build – Work done to iron out faults and further advances – Qualifying.
- Field trials – Further testing of the prototype in real environment and simulation tests including site visits and subcontract testing, but excluding pure QA – Qualifying.
- R&D team admin – Any direct involvement by admin staff on admin for R&D team. Dedicated staff only –Qualifying.
- R&D team maintenance – Cleaning and maintenance for R&D separately identifiable – Qualifying.
- R&D team payroll – Dedicated staff only – Qualifying.
- R&D team security – Extra security provided for R&D Team – Qualifying.