Don’t miss out on R & D Tax Claims…..

With only around 18k SME businesses making a claim each year, many business owners are missing out on tax relief for their Research and Development costs.

Typically these are R & D costs incurred over the last two years of trading by Engineering and Manufacturing companies but also applies to many other types of companies such as those involved with chemicals, food production and software development.

If you are selling a business, this means you will definitely miss out if the claim has not been submitted, ideally 6 months prior to the business being sold. On the other hand, if you are buying a business (as a share sale) then you could stand to gain the tax relief if the claim has not been submitted by the previous owner.

In either case, whether or not you are buying or selling a business, R & D tax relief is still available on R & D activities for the previous two years of trading.

Are you eligible for an R & D tax refund?

  • Have you made bespoke products or customised products?
  • Developed any new products or involved with introducing them?
  • Made any environmental improvements to your processes?
  • Consistently made improvements to your manufacturing processes?
  • Produced design work in-house or sub-contracted design?
  • Carried out prototyping or made models, patterns or tooling?
  • Developed or improved any software in-house?
  • Have you changed the composition of your products in response to changes in legislation?
  • Do you consider yourself to be a market leader in a product, process or technology?
  • Are you regularly problem solving to meet your customers’ needs?

If you have answered yes to one or more of these questions, you could be losing out on a major opportunity to claim an R & D tax refund.

How much is an R & D tax refund worth?

R & D tax relief is a tax incentive which reduces Corporation Tax.  R & D is accounted for by taking the R & D expenditure and enhancing it. Currently this is by 130% (as from 1 April 2015) so £100k in R & D spend is put into the Corporation Tax return as £230k, therefore reducing the profit and the subsequent Corporation Tax. Retrospective claims will get a tax refund by reducing the amount of Corporation Tax payable; a loss making business will carry the losses forward or can cash in the credit at a reduced percentage. The claim can be for the two years prior to your current accounts e.g. A.N. Other Engineering Ltd with a year ended 31 December can claim for R & D activities since 1 January 2015 (as of 12.4.2017). The claim for a year ended 31 December 2015 would need to be submitted to HMRC by 31 December 2017.

How can I secure an R & D tax refund?

Any business owner can apply for an R & D tax refund, subject to complying with the guidelines set out by HMRC.  For those businesses with a turnover in excess of £2m, Stirling’s R & D tax refund specialist can work on a “no win, no fee” basis with the following 6 simple steps, which is typically an 8 to 12 week process:-

  1. A brief initial meeting (a couple of hours of your time) with our R & D Tax Specialist
  2. A simple agreement form to be signed to engage services at no cost or risk to your business
  3. Data gathering exercise (a couple of hours of your time)
  4. Comprehensive report prepared by our R & D Tax specialist with revised tax computations
  5. Revised tax return submitted to HMRC by our R & D Tax specialist
  6. Substantial refund payable to you by HMRC

 Don’t just take our word for it….!

“As a precision engineering company, Redcliffe Precision undertakes a significant element of development activity but had not fully appreciated the potential value of what an R & D tax credit could be to a company that is the size of Redcliffe. We were also concerned at the potential complexity and disruption to routine activities that making a claim could entail. Mark and Paul made the process painless and efficient: they related easily to the characteristics of our business activities and after only a couple of working sessions, the basis for the claim was established. Better still, within weeks of submitting the claim, the tax rebate arrived in our bank account.” Mike Love, Chairman – Redcliffe Precision

Your next step….

Simply complete the form below:-

 

 

 

 

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