Research & Development Tax Claims

There are two areas of legitimate tax claims that have been under utilised for many years. These are Research and Development claims, and Embedded Capital Allowance claims. This week we take a look at Research and Development Tax Claims.

The misconceptions:

Contrary to popular belief this area of tax planning is not restricted to ‘white coats and revolutionary inventions’.

In fact, it is available to limited companies developing their own products and processes.

Qualification criteria:

Limited companies, trading for a minimum period of 18 months, with an annual turnover of £250,000 or above.

Limited companies can claim cash repayments of up to 33% of their qualifying R&D expenditure.

Qualifying expenditure could be:

Technical uncertainty.
Failed projects.
Cost and time spent making an off the shelf IT/CRM package bespoke.
Appreciable improvement to processes.
Bespoke product design and manufacture.

In a survey carried out by NatWest earlier in the year, it highlighted that many businesses were either not aware of the government support available to help them innovate, or expand their business. They didn’t think they were eligible, or thought that the claims process was just too complicated.

Many company owners do not realise that part or all of their day to day activity is research and development. There is no tendering, the activities either qualify for a tax rebate/relief, or they do not.

The R&D Claims Company – What we do:

We specialise in assisting our Clients in obtaining their rightful share of the £1.5bn purse that the Government has set aside each year, for companies they deem to be undertaking qualifying R&D activities.

We work with company Accountants to make the process as efficient and effective as possible, resulting in an average claim amount of £40,000.

With fees to pay from a successful claim only, it doesn’t cost anything to establish if your business, like thousands of others, qualifies for this generous benefit.

The R&D Claims Company’s successful case studies:

Local Taxi Company – money spent on making an off the shelf integration package bespoke to their business development.
Building Company – their research into new drilling techniques and foundation compounds for installing property basements.
Micro Brewery – new brewing techniques and staff training to “Master Brewer”standards.

With combined experience of 12 years working within this specialist sector The R&D Claims Company Ltd have the necessary experience, skill set and knowledge of current legislation, in order to maximise claims, all within the guidelines set out by the Government & HMRC.

What next?

For more information, or to establish if your business qualifies for this generous tax incentive please contact us on 01925 859626.