A quick guide to what is required for a project to be included in an R&D tax credits claim and what costs can be included.
Does my project qualify?
Find out below in our two videos.
Is it worth it?
Yes, check out our R & D tax credits calculator to see how much an R&D tax credits claim might be worth for your company. Our clients on average have received over £119k from the R&D scheme. It is very worthwhile.
These four questions require placing the context of the legislation and your potential R&D activities to see if a project qualifies. They are based on the 2004 BIS Guidelines. It takes both knowledge and experience to understand them and relate them to your projects. The best starting point is one of our free assessments.
What scientific or technical knowledge or capability existed at the start of your project that you planned to improve?
What is the overall advance in knowledge or capability?
What scientific or technological uncertainties did you face?
How did your project overcome these uncertainties?
Qualifying Activities & Costs
The key activity is resolving the scientific or technological uncertainties, this might be in a number of ways for example iterative development, prototyping, proofs of concept, or experimentation and testing. You can claim some costs that relate to these activities, but crucially not everything. You can also claim staff costs for some indirect supporting activities like project management, HR, and finance in support of R&D activities. The boundary of the R&D costs you can claim are those that relate to resolving the scientific or technological uncertainties you face. These differ in nature from the commercial project and the entire development project which might include routine work and elements not related to R&D.
If you have any questions, contact RandD Tax.
Costs you can claim.
Each cost has specific “rules” around the correct treatment. Many are quite trappy. Common mistakes and misperceptions include:
- Claiming dividend as a staff cost. Cannot claim dividend payments at all.
- Technical EPW/Subcontractor issues. Failing to handle EPW and subcontractors correctly, two different treatments, and various rules to consider.
- Treating money as a consumable. It would be nice but unfortunately no. Consumables have a specific meaning and rules.
- Hosting or Data purchases as software. Unfortunately, these are not treated as software under the rules and frequently claimed in error by those that claim without advice.
RandDTax were referred to me by the CEO of Fredericks Foundation when my existing providers had not moved the a claim forward in over 12 months, and I felt as a small research intensive company we were at risk of losing a years R&D. Everything about working with RandDTax was a different experience. Regular meetings, working towards an agreed timeframe and deadline, an accurate report which reflected our discussions and ultimately a successful claim. I would have no hesitation in recommending Terry and the team to any of my contacts. Thanks for your support
Founder and Managing Director
Terry and the team at RandDTax gave us fantastic advice. I don't think we would have ever navigated all aspects of the claim process, without the proper advice. RandDTax made it a fairly straightforward process, which did not have a massive impact on our time. It was certainly very well worth doing. We had a number of Zoom calls with Terry, his team and some of my team. The process was rigorous and very professionally driven. I have certainly recommended RandDTax already to like-minded businesses. It was an absolute pleasure to deal with Terry and the RandDTax team, and everything was explained to us in a first class manner.
Working with RandDTax has helped us in getting our funding correct for tax purposes. They came recommended by our accountants. Linda was the first point of contact and we liked her personality and the way she came across, which was very professional. They're very professional and for me they are very easy to deal with.
Director - Advanced Tooling Systems UK Limited
What we were doing with RandDTax is pretty complicated and they were very good at walking us through what needed to be done and making it all clear. It helped us to release some capital that we wouldn't otherwise have been able to access. Linda and Paula 100% did what I had hoped for.
Director - Buzzing Lab Solutions Ltd
RandDTax contacted Fowler Building Contractors to offer assistance with our R&D Tax Claim.
We had a meeting with Richard Linsell who explained the process and made the process so much easier and smoother than we have had with other companies in previous years. Fowlers didn't have much time until the deadline however Richard Linsell carried out the claim process successfully, professionally and within a tight deadline to ensure the submission date was met.
We would be more than happy to recommend R&D Tax's work ethics and attention to detail and will be using them for their next return.
Today I received a very nice and welcome cheque from HMRC for an R&D tax refund, all thanks to Simon Shuker of RandDTax. To be honest when I was first contacted I was more than sceptical, even though it was an intro from someone I trust, I did not believe that it would not take a considerable amount of my time and end up being a pointless exercise. I think I have a hat for supper today!
Luckily Simon has good grasp on the type of work we have been doing, as he comes from an engineering background so explaining the tech combined with hardware and innovation was not an issue. Having had an initial call or two he set up a zoom (this was 2020 after all!) with Terry Toms and myself, and we all agreed that indeed EV Driver had a good reason to look into this in more detail. The issue being I had very little time to spare but I was assured that as good accounts have been kept it would not need me to be over involved and as the fee was based on a % of a successful claim, I had little to lose but time. He was right, I set aside half a day initially to pull everything together and a few calls and read throughs and we were there. They insisted my accountants check over things and the claim was duly submitted.
The work that we put in during those early days of setting up our network, testing roaming and interoperability, building a customer service solution have all helped to grow and develop not just EV Driver but the industry as we share knowledge with others. Today I feel like that has been recognised and rewarded. Thank you so much for help and hard work over the last few months.
We thought that we had our R&D Tax Credits well under control. However, RandDTax were able to show us exactly how to get everything we were entitled to, and when we were entitled to it. As a company investing heavily in developing every ambitious, intelligent customer service IT portals it was very rewarding to find that the UK government would give us tax credits in cash equal to roughly 30% of our R&D spend. This has been a great help and I would be very happy to recommend the RandDTax team to any company investing in innovation. Our normal tax advisers do a great job for us for most areas of tax, but when it comes making the best of R&D Tax Credits it pays to engage dedicated specialists.
We feel that the process works well and we truly appreciate your continued guidance and support for our claims.
Chief Executive Officer
IMSCAD Global Ltd provides complex solutions for graphical applications be it on premise, hybrid and/or cloud based. The support given by Linda and Paula at RandDTax from the initial consultation through to the successful conclusion of what was a significant six-figure additional deduction to offset our corporation tax (with the options of taking a five-figure payment directly from HMRC) was invaluable and we highly recommend this company.
My experience of dealing with the government was just too much pain for small companies. Thank you Linda for all your hard work with our claim and successfully obtaining Tax Credits for us.
For the last four years Fretwell-Downing Hospitality has used the services of Terry Toms in support of the company’s application for Rand D Tax credits. During that period Terry has assisted us in gaining in excess of £200k in R&D tax credits.
Thank you all again for your help. It makes a big difference to the success of our small company!
As precision engineering manufacturers, we continually strive to improve the quality, performance and cost/value of the finished products we deliver however, until we met Tim Walsh from RandDTax we were not entirely convinced that we qualified for R&D tax relief. Through the confidence that RandDTax inspired in us and their determination and defence to counter all HMRC’s questions, we achieved the full refund we were expecting.
MD - Precision Products (Brighton) Ltd
Fletcher Moorland is a one stop source for industrial equipment repair and servicing. We offer Electro-Mechanical Repair, Servo & Spindle Repair, Automation Repair and Specialist Manufacturing. Much of our work involves reverse engineering and we have built a team of skilled engineering staff who conduct a wide variety of Research and Development into engineering advanced solutions for our customers. We originally started claiming R&D Tax Relief though our Accountants and were referred by them to Jaime Lumsden of RandDTax once it became clear that our claim could be much more comprehensive and required specialist support. RandDTax works with us and our Accountants to maximise what can be correctly claimed. It is an efficient and quite rapid process which to date has generated successful results, year on year, within 28 days from submission. Over the past five years, we have successfully claimed R&D Tax Credits providing Technical Justifications and Costs Analysis to the satisfaction of HMRC. To date, our claim values have totalled some £600K and the resultant reduction in Corporation Tax, credits in Cash refunds and the ability to carry forward losses for future use, all have been very valuable to our business.
Operations Director - Fletcher Moorland Ltd
I’ve never in over 10 years in business had anything given to me before, or known any support for a small business like this that can benefit my business to this level overnight. I had no idea we could qualify for something like this. After a brief chat, Steve Richardson at RandDTax made things clear and he has been great to deal with. Steve explained everything we needed to know clearly from the start, done all the work and hardly any of our time has been taken up…No hassle at all.
Director - Just Internet Solutions Ltd
Steve Richardson at RandDTax was efficient, reliable, and patient. We were helped to recover funds that we urgently needed urgently and the process was stress free thanks to all Steve's help.
Managing Director - Weblinx Limited
I am writing to thank you for all your hard work and support in the successful claim against R&D expenditure. This is of significant financial consequence to CBH and will ensure our cash flow for some considerable time.
We’d heard of R&D Tax Credits but hadn’t done anything about it as we thought the application process would be lengthy and time consuming, and our time would be better spent doing something else. My experience generally with government handouts was that they were only worth applying for by big companies, dealing with government was just too much pain for small companies. A chance conversation with Terry put us straight, we are now saving half our tax bill every year for minimal cost and effort.
For a small company, deciding whether to put in an R&D tax credit application can be daunting – we don’t have time to waste! Fortunately we bumped into Terry at one of his presentations, delivered – note – alongside specialist assessors from HMRC. A week later our application was done, with about a day of work on our side. Terry removed pretty much all of our worries: complexity, horror stories about over-charging tax credit consultants, and so on. Our application was successful. We will be back!
CEO - Duco Technology formerly Model Two Zero
We are an innovative web development company, now in our third year of claiming R&D tax relief. We had no idea that we could get our corporation tax payments reduced until we spoke to Terry and Linda from RandDTax. We are really delighted with their service, we have claimed above £7,000 per year and it has made a big different to our company. They make the claims process as simple as possible and are easy people to work with. If you think you may be doing R&D I recommend you contact them.
Managing Director - Web Boutiques Limited
Get started today with a free assessment
It's quick and easy to sign up for a free assessment of your business.