E: enquiries@taxandgrants.co.uk
Videos
- What is R&D Tax Relief?
- What is the definition of R&D and how does a company claim tax relief on it?
- Why aren't many companies making R&D Claims?
- How does R&D Tax and Grants help companies to make claims?
- Does a company have to pay tax to claim R&D Tax Relief?
- What success stories have R&D Tax and Grants had so far?
EMERGENCY BUDGET - NO CHANGE IN R&D TAX RELIEF
Black Country duo brings relief to hard-pressed manufacturers
Tax Reclaims
R&D tax recovery for companies was initially introduced in 2000.
It is a government backed initiative instigated by the EU to encourage SMEs to develop their products and processes. There are even several HMRC offices around the country which have been set up to deal with the tax affairs of such companies.
However, most companies do not have the spare capacity within their organisation to carry out the necessary work and are often hindered by their external accountants who believe such claims usually lead to HMRC enquiries.
This negative attitude combined with the fact that many companies do not realise that they are, in fact involved in R&D, means that the overall amount of claims has actually gone down in recent years despite recent improvements to the scheme.
Our role at RDTG is firstly to identify relevant R&D expenditure for a client and then prepare and submit the claim to HMRC. We then liaise with the tax authorities and resolve any queries. Finally, tax refunds for our clients are normally received within 4 weeks of submitting the revised Corporation Tax Returns.
Under the present rules, the last 2 years tax returns can be revised and of course future tax payments will be reduced by similar amounts.
What sort of businesses are eligible for R&D tax relief?
- Manufacturing
- Engineering
- Electronics
- Communications & Media
- Transport
- Computer software (including web design)
- Pharmaceuticals
- Etc.,
In simple terms, there are thousands of companies eligible because it is not just the “product” which can be innovative, it could also be the “process”.
If you have improved the way you make your standard product over the last 2 years either from a “Health and Safety” angle or maybe because it is now more environmentally friendly, then this is, by definition, R&D. Even failure can be good in R&D terms, because if there is risk that the innovation will fail then that is likely to be R&D!!