Claiming R&D tax relief

If your company performs any activities that fall within the tax definition of research and development you should be claiming the generous additional R&D tax reliefs that are available. SMEs can enhance their qualifying expenditure by 130% (125% before 1 April 2015) as well as having the option to convert tax losses created by the relief into cash.

Large companies also benefit by virtue of a 30% enhancement to qualifying costs. Alternatively, since 1 April 2015 they can elect for a 11% tax credit in their accounts that can trigger a tax repayment even in the event they have not paid any corporation tax.

These credits are aimed at companies that are actively involved in research and development. This includes the innovation, improvement or development of a process, product or service. The R&D work is not restricted to any one industry and goes beyond the typical ‘men in white coats’ scenarios. We have made successful claims for companies in the following sectors:
 
  • life sciences and pharmaceuticals;
  • manufacturing;
  • textiles;
  • software development;
  • industrial and mechanical engineering;
  • energy;
  • renewables and recycling;
  • electronic products;
  • telecommunications;
  • defence and aerospace;
  • house building and construction;
  • food technology;
  • automotive;
  • marine.
We have extensive experience in assisting companies to identify those activities and associated costs that could be included in a claim thereby either yielding an increased tax deduction or a tax repayment. Once finalised, the information is summarised and a report is submitted to HMRC with the company's tax return. If HMRC opens an enquiry into the claim, we will negotiate with them on your behalf and seek to ensure that this is settled without delay.

Further, even if you are already claiming R&D tax relief we often find that our specialist R&D Team are able to identify additional qualifying projects. We have reviewed lots of claims and have submitted replacement claims to HMRC where we believe the previous claims to be understated. Our second opinion service operates on a standalone basis and we structure our fees dependent on success.