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R&D Tax Credits are an incentive for companies to invest in innovation

What does that mean to me and my business?

Buy making a carefully constructed claim which we build with you, you can reduce your corporation tax or gain a tax refund.

What is the definition of ‘Research and Development’ work?

This can sound like reinventing the wheel or that you have to be a scientist and although that true this type of work definitely falls under R&D Tax Credits its equally true of some simple investment in improving a processes, sorting and storing data or overcoming an obstacle in your normal day to day work not faced before. It’s much broader than most businesses imagine and we give some excellent examples of where our clients have benefited the below client examples.

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How do I understand if I qualify?

When we review the eligibility of the claim we look at any projects you are working on and decide any of the following were/are true

  • Was it a specific project we worked on?
  • Did we look for advance in science and Technology in the project?
  • Did we try or actually overcome an uncertainly in the business either in the work we do or introducing a new process
  • Would d it have been easy for a professional in the field to overcome?

Please note the fact that it was either successful or not successful is not relevant, in fact the failure is more evidence that it was neither easy or straightforward to develop and introduce.

How can we help you?

It’s simply astonishing to us see how many opportunities have been missed for claims that can have been made that were not, large numbers of businesses are missing out on a significant tax break.

It’s true that R&D claims are complex, however, we have invested considerable time and expertise testing and developing a claim process that will gain the best possible outcome for our clients.

We will spend time with our client, looking at projects they have worked on through the years(s) (the first claim we can cover 2 trading years) to understand where the  R&D opportunities to claim exist and to establish there is a claim to be made.

Once that’s established we can move forward with the full claim.

Some examples of where we have helped clients with

Example 1.

Simple DataBase Built

Utilities cost comparison business which deals with commercial business. With the change in competition rules for water suppliers our client spotted an opportunity to use the data to develop a database where they could start to analyse costs savings for the business they wished to approach.

After fully exploring the associated costs the client gain a tax benefit of £11,500 in year one and have since claim 2 more of a similar amount

Example 2.

Computer software development

A new client where we re-assessed and resubmitted the company tax returns. This business develops software to order for their clients and develops some of their own products, not all of whichever get to market or working. This work was quite clearly Research and Development and a claim was made for 2 years ( when we were not the accountants!)

We made a claim over the two years and the client receive a rebate of £115,000. We fully expect a further £50,000 to £60,000 this year and provided the same work continues more going forward

Example 3.

Security installation and service company

This company take instructions to install CCTV, Security Alarm Systems and also carry out CCTV monitoring and Servicing. Over the year they had 2 particularly challenging installations whereby they had to overcome some uncertainties and challenging obstacles. In addition, they developed a method for CCTV monitoring which improved the way they were currently operating the system.

After reviewing the claim was made and they received £17,000 in the first year and have continued to claim for several years thereafter.

Example 4.

Circuit Board Design and Sales Company

This is an example where it does take a lot of igneous work but it’s a project that did not make it to market. Our client was instructed to make a microcircuit board. He consulted experts in the field that assured him that it could be made. Over a two year period, this was designed and tested, redesigned and tested and so on. A considerable amount was invested in designing and producing and testing and eventually it was agreed that it could not be done. Other parts of the business were very successful but this investment put a strain on the cashflow.

The claim that was made came to £88,000

You do not need to be a client for us to make a claim on your behalf, so if you’re looking to just focus on R&D we can help assist you with this, we have also made claims for previous trading years that have already been filed meaning you may already have a legitimate claim that you are unaware of.

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01603 627963

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