Research and Development Tax Credits – it’s Crystal Clear
Research & Development Tax Credits are a government incentive aimed at helping UK businesses by encouraging and rewarding innovation.
Did you know our country spends roughly half as much on Research and Development (R+D) as Germany does? One of the reasons for this is that historically other countries have offered much better tax incentives for investment in R&D. The good news for businesses in the UK is that has changed, but many companies still don’t realise they are eligible for this tax incentive.
“Research and Development for tax purposes takes place when a project seeks to achieve an advance in science or technology.” HMRC
In 2013 the government introduced The Research and Development Expenditure Credit (RDEC) scheme to encourage and reward scientific and technological innovation by small and medium sized enterprises (SME’s) within the United Kingdom. This benefit is payable through a cash payment or a reduction of tax or other duties due.
Construction, manufacture, ICT, agri food, advanced engineering, bio engineering are some of types of companies who may be undertaking work eligible for R+D tax credits claim. If your company develops new products, materials, processes or services which improves or extends knowledge or capability in science or technology then your company could be eligible.
We have helped many companies recognise the R+D work they do as part of their business. We make it our business to get to know your business and understand the projects so we are sure any claim made comes into the definition of R+D as laid out by HMRC. We make no charge for our services until a claim is successful and you receive the tax credit from HMRC. But don’t just take our word for it. As a result of our work on their behalf, our clients are delighted with financial boost tax credits give their companies and are happy to share their stories as testimonials.
Case Study: Crystal Manufacturer
A crystal manufacturing company got in touch with us about applying for R+D tax credits through our website. The Managing Director thought it was a long shot as he had been advised an application would not succeed but wanted to take a closer look into the possibilities given the work his company undertake.
The first half hour of our meeting was quite challenging, as both the managing director and finance director were highly doubtful that a tax credit payment from HMRC was possible. We were able to demonstrate our R&D expertise, understanding of their business and the local economy. We also explained our standard terms are that our services are charged only after HMRC pays the client. With no financial risk to them they agreed for us to start a claim on their behalf.
Since then we have successfully completed our third claim on behalf of this company and the refunds we have been able to claim for them total £173k.
Their Managing Director says “Oaktree have supported us through every step of our R&D tax credit claims and taken time to thoroughly understand the nuances of our business. In doing so, we have identified many more eligible activities & therefore benefitted significantly more than we ever anticipated. Thanks to their efforts we have been able to fund many more activities, develop new products & increase our sales."
If you want to check if your company is eligible to apply for R+D Tax Credits take our quick quiz or call us on 01900 268086 or 07889 181080.
We’d be pleased to talk to you about how our strictly fixed price accountancy can help your business claim R+D tax relief so you can boost your business success.
Thursday 12 April 2018