R&D tax relief is a government way of incentivising limited businesses for developing new or improved products, services, systems and materials. According to HMRC, R&D Statistics show less than 255,000 claims have been made between 2000 & 2018.
In order to qualify for R&D tax relief, the company must be Limited, account for Corporation Tax and it can be applicable for those making profit and loss making companies alike. Watch our R&D video below NOW.
All limited companies in the UK could be eligible for the government Research and Development tax credit scheme.
R&D expenditure can include:

  • software development, subcontractor costs, technical analysis, de veloping or enhancing manufacturing processes and hardware costs.
  • There are many other areas of R&D that could also be included.
Do I qualify for R&D tax Credits?

All LTD companies, whether they make a profit or loss, can qualify. They have to show that they have developed new products or processes, improved existing products by making them “better” in a measurable way, diversified into new markets by extending their product range or more generally, overcoming real world uncertainties they didn’t know the answer to.

Am I an SME?

For the purposes of R&D, an SME is a company that has a turnover of less than £90m, Assets of less than £78m and less than 500 staff.

How long does a R&D claim take?

HMRC online states they will process 95% of all claims within 28 days of receipt. From time to time they have back logs, but on the flip side, some claims take as little as 2 weeks. The average time for our clients to receive their awards is 31 days

Can you work with our existing accountants?
Yes and it is encouraged. We offer a “start to finish” process and can submit the claims to HMRC on your behalf, but welcome the accountants input as they often hold the financial documents needed to fast track claims.
We have numerous accountants who use our services as a value add for their clients
How much work is required to make a claim?
The more the better, but we appreciate that you have your day to day business to run.
We will request as much of the info needed during the first call and will contact you at the convenient times if we need more. We aim to publish reports within 5 days of the initial contact.
How can I tell what sort of AWARD I will receive?
The type and amount of award is driven by your R&D qualifying expenditure and your profit or loss figure BEFORE taxation. As a rule, if you have a loss or a small profit, you will get a cash credit, and if you made a substantial profit, you will get a reduction in future tax (which 9 time out of 10 results in a refund of Tax already paid)