DON’T MISS OUT ON R & D TAX CLAIMS..

R&D Tax Relief for UK SMEs has been around since 2000 but it is only in the last couple of years that the numbers of such companies claiming it have increased substantially. In 2014 around 16,000 SME businesses claimed £800m in tax relief but still the vast majority of eligible companies are not claiming what is rightfully theirs.

R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The activities which directly contribute to achieving this advance through the resolution of scientific or technological uncertainty are R&D. In addition, it is important to realise that an R&D activity does not just relate to a new or improved product it could also relate to a new or improved process.

So what does that mean in practice and specifically which activities are considered worthy of an R&D tax claim? We have put together a list of the sort of things which companies carrying out R&D are involved in on a regular basis….

ARE YOU ELIGIBLE FOR AN R & D TAX REFUND?

• Have you made bespoke products or customized products?
• Have you developed any new products or are involved with introducing them?
• Have you made any environmental improvements to your processes?
• Have you consistently made improvements to your manufacturing processes?
• Have you carried out design work in-house or sub-contracted design?
• Have you carried out prototyping or made models, patterns or tooling?
• Have you 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 and haven’t made a claim for R&D tax relief, you could be losing out on a significant tax refund.

SO HOW MUCH IS AN R & D TAX REFUND WORTH?

R & D tax relief is a tax incentive which reduces Corporation Tax. The tax relief is calculated for by taking the R & D expenditure and enhancing it. Currently this is by 130% (as from 1st April 2015) so £100k in R & D spend is entered onto the Corporation Tax return as £230k, therefore reducing the taxable profit (£130K) and the subsequent Corporation Tax payable (£26K). A two year retrospective claim can be made to get back overpaid tax for a profitable SME but even a loss making SME can get an instant cash injection by ‘cashing in R&D losses’ and claiming an R&D Tax Credit. A typical annual tax saving for a SME involved in R&D activities would be £30k – £40k.

SO HOW CAN R&D TAX CLAIMS LIMITED HELP YOU?

R&D Tax Claims Limited was set up by Mark Evans FCA in January 2012 after he became interested in this particular niche area in late 2008. Since January 2009, Mark and his team of industry experts have helped UK SMEs claim back over £22m in tax, at an average annual saving per client of over £35,000. Mark and his team enjoy an excellent reputation with the five specialized R&D tax offices around the country which has resulted in a 100% success rate for claims submitted for over 200 SMEs throughout the UK.

HOW CAN I SECURE AN R & D TAX REFUND?

Any UK based SME can apply for an R & D tax refund, subject to complying with the guidelines set out by HMRC. For the purposes of R&D tax relief, an SME must have less than 500 employees and either a Turnover of less than 100 million euros or a Balance Sheet total of less than 86 million euros.

For those SMEs with a turnover in excess of £2m, R&D Tax Claims Limited work on a “No Win, No Fee” basis and by following their systemized 6 steps approach (see below) a significant tax refund could be yours within 12 weeks of commencing work on the tax claim.

1. A brief initial meeting (a couple of hours of your time) with an R & D Tax Consultant at your premises
2. A simple contract signed by yo to engage our services at no cost or risk to your business
3. Detailed follow up data gathering exercise (another couple of hours of your time)
4. Comprehensive report prepared by the R & D Tax Consultant with revised tax returns and computations by Mark Evans FCA
5. Revised tax return including back up documentation submitted to HMRC
6. Substantial refund payable to you typically within 4 weeks of submission to HMRC

TESTIMONIAL

“When our accountant suggested that we look at R & D tax claims we thought that it wouldn’t be applicable to us as we are an SME. We thought that it was something that the larger companies did and that we wouldn’t have anything to claim. We look back now and realise how wrong we were to make those assumptions.

Mark and Peter have guided us through the whole process and offered advice and assistance at every stage to make sure that we achieved the very best results possible.
It’s rare that we enjoy paying an invoice, however with R & D Tax Claims it really makes us smile knowing how good the result is. It’s a nice feeling to receive something back from the tax man for a change.” John Sturgess, MGS Technical Plastics.

“A lot of companies, in particular SME’s will be of the opinion that it isn’t relevant to them, there is a significant amount of tax relief available to them which they are entitled to, they just don’t know it, that is why we are delighted that R & D Tax Claims have come on board with RAPRA both as a member and as a Preferred Supplier and we look forward to working with them in the future” commented Wendi Beamson, Business Development Manager at RAPRA.