Since the launch of the Research & Development (R&D) program, way back in 2001, more than £6.5 billion has been claimed as tax relief. Even in the most recent year, the cash paid out to support R&D across the country has doubled, and will continue to grow year on year.
Despite the above statistics, an overwhelming majority of business owners still don’t know what R&D tax credits are! The program’s been around for almost 20 years now, and was put in place to support the innovation and development our businesses undergo day in, day out.
So, what’s R&D, and do I qualify?
In short, R&D tax credits are a UK tax incentive designed to encourage companies to invest in R&D. Companies are able to reduce their tax bill or claim payable cash credits as a portion of their R&D expenditure.
Eligible R&D must be:
- Seeking to achieve an advance in science or technology.
- Subject to scientific or technological uncertainty.
- Not readily deducible by a competent professional – someone with a degree or significant industry experience
Costs which could potentially be eligible include; staff costs, consumables, software, subcontractors, and heat and light.
Don’t let the talk of science and technology put you off, this isn’t aimed purely at people in lab coats and top secret government research centres. We work with companies in the food and drink sector, civil engineering, architects, consultancy, IT, manufacturing and many, many more. The fact is, 97% of eligible UK SME’s are yet to claim R&D tax credits.
Some responses I’d expect could be:
- Is it worth it?
- I don’t have the time.
- I’m still not sure if this even applies to me.
- I’ll just ask my accountant to do it for me.
- Why should I work with Haines Watts?
The claim could potentially provide your company with a cash injection, enabling you to continue growing, expanding and making your business successful. The average claim made by small and medium enterprises in the UK is £53,876 (2016-17). It sounds too good to be true doesn’t it? The government giving small and medium UK businesses up to 33p per £1 spent on R&D…Well, the government benefits from increased development in our economy, and with so much research being done, this can also lead to benefits on a global scale.
The Haines Watts Way
We’ll come to your office, understand the mechanics of your business, and uncover the full extent of R&D your business undertakes. Our team’s made up of professionals from a wide array of backgrounds, including IT specialists, a former HMRC R&D Inspector, and consultants who have extensive industry experience in engineering, manufacturing and construction. Through our experience in dealing with a huge variety of claims, and our years of experience we’re expertly equipped to ensure your R&D claim’s robust, maximised, and most of all, hassle free for you.
At Haines Watts, we know you have a business to run too, so we’ve perfected a streamline and effective process – which allows you to continue doing what you do best.
How much would this process cost me?
The fees for R&D claims are usually calculated on an agreed percentage of the benefit you receive You’ll only have to pay your fee once you’ve received your money.
Along the way, we’ll also notify you if we think there’s another way we can help your business grow, using one or more of our various service lines which range from audit to accounts, all the way to more diverse specialist services such as property and people services. We make it our business to understand what you want from yours. Our aim’s to ensure you receive the advice you need, when you need it. We’d welcome the opportunity to work alongside you, improving or perfecting your processes, making sure you’re able to focus on what’s important – your business. Download our Research and Development guide now.
So, what are you waiting for? Get in touch with James Riley on 07825 608376 or JRiley@hwca.com today.
Want to know more? Call us on 01604 746760 or email email@example.com