Could your business be eligible for R&D Tax Relief?
Fund your future with R&D tax credits
The Research and Development (R&D) tax relief scheme is a government initiative, created by HMRC to reward and encourage UK companies to invest in innovation. It is a way for the government to incentivise businesses to innovate.
R&D tax relief is available to companies in all sectors and specialisms. However, too often than not, the term ‘Research and Development’ or ‘R&D’ sounds too complex or broad and deters eligible businesses from claiming.
No matter what sector you work in, you may be performing R&D for “thinking outside the box” and creating new innovative products, services, or processes.
Examples of eligible R&D work
- Design of products, services, processes, or systems involving new technology or sustainability improving those already produced or installed
- Overcoming challenges on a construction site by researching and testing different materials to find the best solution
- Using, designing, and creating custom made products or bespoke materials
- Creating a brand-new solution or product for a client, specific to their needs
- Testing in search for, or evaluation of, product, service, or process alternatives
Successful R&D tax relief claims
For an R&D claim to be successful, you must demonstrate that your work was either an attempt to advance overall knowledge or solve uncertainties in your industry. HMRC also need to be confident that the work you have been carrying out does this in the eyes of a ‘competent professional’.
Whoever carries out your claim will need to be aware of both the relevant tax legislation and to be familiar with your business and the technology that you use. Accountants will of course be very well versed on the relevant tax provisions but may struggle with verifying the technical arguments with HMRC. Therefore, choosing an R&D tax specialist is ideal.
Access2Funding, has a combined team of R&D specialists, technical experts in various branches of science and technology, and a team of tax specialists, all working together for the benefit of our clients. As a result, the team can provide a holistic service, preparing a business’s claim, and maximising said claim.
Misconceptions and truths
There are many misconceptions about R&D tax credits. Here is some of the common truths about claiming R&D:
- It’s not just people in white lab coats that are eligible - so long as you’re a limited company, the sector you work in is irrelevant.
- You can claim for ‘failed’ projects - so if a project didn’t pan out as hoped but you invested time and money into trying to seek an advancement within your industry, you may very well be eligible.
- You can claim based on any qualifying project costs over the last two financial years.
Already made a claim?
If you have already made an R&D claim, Access2Funding offer a free review service where the claim is assessed, and any extra expenditure that may have been missed previously is accounted for. It’s well worth having the conversation.
Access2Funding is a team of tax specialists, experienced business growth experts and skilled client account managers working with businesses to uncover hidden funds. It is an R&D Tax Relief specialist with teams across the UK, including England, Scotland, Northern Ireland and Wales with its head office in Merseyside. It is an ACCA approved employer with an annual turnover of £4.5million.
Blog by: Access2Funding