SME’s can claim back up to 33% of their R&D costs, with the average yearly claim size being £60,000. Large organisations can also take advantage of this scheme. UK companies greatly benefit from this incentive, as it allows them to spend more money on innovation and product development. Although the cash generated from this can be used however you would like.
There is a common misconception that the term “R&D” is reserved for describing work carried out by scientists in white coats in a lab. In reality, R&D is a much broader term for the innovation and product development process, anything where there is a risk of failure. You don’t need an R&D department or science qualification. If your project presents “an advancement” in a particular science, engineering or technology, then you’ve likely undertaken activities that qualify for R&D tax credits.
Many companies working on low-carbon projects such as construction or energy are eligible for the scheme!
It is best to work with one of the specialists in R&D tax credits, most accountants do not have a great knowledge of this system.
In order to apply for R&D tax credits, you must put together two reports.
Most well put together claims go through without a hitch.
Occasionally, HMRC may request more information to evaluate your claim. These don’t usually present any problems, but it’s best to have an expert represent you.
Have any questions about the process? Get in touch with us at firstname.lastname@example.org for a free evaluation. Don’t miss out on your R&D money!
Specialist Civils contractor with around 150 employees developed a new way of build foundations without disturbing listed buildings that were in close proximity to the building site for a project.
They were told by their accountant they did not qualify.
After we reviewed their innovations, we found many projects they did were within the scope of HMRC’s definition of research and development.
They were also surprised to learn that the new building foundation modelling software they had built to help their business was a qualifying R&D project. They received more than £300,000 from the HMRC.