R&D tax credits are a tax incentive designed by the Government to reward innovative companies who spend money on developing new products, processes, or services; or enhancing existing ones.
R&D for tax purposes takes place when an R&D project seeks to achieve an advance in science or technology, appreciably improving on the current state of the art.
You could reclaim up to 33% of costs spent on:
Our R&D Tax Credit specialists develop your R&D Tax Credit claim alongside your technical and finance staff to maximise your potential claim value. From working with hundreds of start-ups to large companies, we can quickly and accurately identify what HMRC class as qualifying Research and Development expenditure. Also, if you’ve secured a grant we can support you with the RDEC scheme.
Our team needs to get the scope of the Research and Development invested in over the past few years. We examine R&D Tax Credits using an ‘Innovation Lens’ as opposed to a ‘Tax Lens’. This can include a wider range of activities that will be eligible, in accordance with HMRC’s guidelines.
Using our experience of translating technical innovation, we’ll work with your technical team to gather information on the development work undertaken. Then, we’ll formulate a technical description of the relevant year’s development, justifying expenditure and highlighting the progress made.
At this stage, our R&D Tax Credit specialists need evidence to back up the technical information. Our team will liaise with your Finance Director and Accountant to gather the required financial information to prepare the R&D Tax Credit financial calculations. Eligible costs include wages, software, consumables, clinical trial volunteers and subcontractors.
To ensure the R&D Tax Credit claim meets the requirements of your business, you are able to review the technical report with your accountant. Your accountant will then be able to submit the final claim as your registered tax agent and trusted advisor.
In the rare event that an R&D Tax Credit claim is challenged by HMRC, we’ve got your back. Our R&D Tax Credit specialists will continue working with your technical and finance teams, making every effort to provide the appropriate justification for the claim to satisfy the governing body.
R&D tax credits or RDEC have a number of advantages for both small businesses and large enterprises. Tax credits are an accessible form of funding, that allows companies to reclaim up to 33% of R&D expenditure. If the costs are eligible, some companies can receive a cash injection back into their business with very little turnaround time compared to other forms of funding.
Tax credit claims can also be backdated up to two accounting periods, so if you’ve already been carrying out R&D activities such as developing new products or processes for some time, you could be eligible to claim this back.
