If R&D Tax Credits are new to you, this tax relief can add up to thousands, as either a reduction in your Corporation Tax bill or a direct cash injection.

What company activities qualify?

The good news is you don’t have to be involved in what many people view as traditional research and development, you just have to be a company seeking to research or develop an advance in your field, even if the project is/was unsuccessful.

If you’ve worked on any of the projects below, within the last two financial years, you may be entitled to claim.

·  Working with different materials

·  Using prototyping and low-batch production

·  Altering the packaging for your product(s)

·  Developing new products in house or subcontracting the work out

·  Reducing wastage and making processes more sustainable

·  Undertaking a design process for new product development

·  Improving your manufacturing processes

·  Reducing the number of steps in a process due to new machinery, or adapting your core design to suit machinery

·  Increasing speed/output without compromising safety and failure rates

The finer details

You must be a UK limited company.

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Profit making companies

If your company is profit making, you’ll receive a Corporation Tax saving of £24.70 for every £100 spent on R&D, equating to 130% additional allowable costs at 19% Corporation Tax rate.

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Loss making companies

If you’re loss making, there are two ways you can receive the credits, and it depends on what you view as more important: cash into the business now …or… overall savings.

1.      Cash into the business - surrender the R&D losses to result in £33.35 per £100, equating to 230% enhanced R&D costs at          14.5% Tax Credit rate.

2.      Overall savings - carry the losses forward to the following year’s profits (if you project profit in the future and don’t need the          cash urgently). This saving will be 230% of the R&D costs at 19% Corporation Tax rate (equivalent to £43.70 per £100 spent)          but you’ll see the benefit in future years.

How to start the ball rolling

Email Tom Clappison, our tax specialist, or call 01482 772261 for a chat and he’ll be able to identify whether you can make a claim or not.

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What’s it going to cost?

Firstly, it’s not going to cost you anything to ask Tom if your activities can be classified as R&D under this scheme.

Secondly, we will only charge you if you have a successful claim, and we only charge a low percentage fee, based on the size and complexity of your claim.

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