R&D Tax Credits for a Test and Measurement Manufacturer
Date: 18th February 2013
I’m a Test and Measurement Manufacturer – Can I claim R&D Tax Credits?
You certainly can! Especially if you are routinely seeking ways to improve your products.
Ask yourself the following questions.
Do you make test equipment? - then check your R&D tax credit eligibility now.
Do I manufacture test Instruments, cabinets, mechanical NDT equipment, electronics, electrical, mechanical, chemical or physics based systems?
Do I spend time designing, upgrading, improving or researching for better solutions to help me stay competitive in the market for my equipment?
Do I have to overcome uncertainties when I am designing equipment, in other words, do I have to trial, test, research or experiment with my solutions?
If the answer is yes to any of the above, then check whether you should be claiming R&D Tax Credits.
It’s really not about rocket science or men in white coats. Essentially, the fact that you are doing what most businesses do, staying competitive, is what drives R&D.
The key elements which qualify you are:
You use science or technology in advancing your products.
It isn’t straight forward and you have to overcome some technical uncertainties.
How do you claim and what does it cost?
The first step is to speak to an R&D Tax Credit specialist. This should cost you nothing. It is just an exploratory question and answer session, usually on the phone.
The second step is to set up a scoping meeting to see what you should be claiming for and how much. This should cost you nothing. You are just seeking information before you decide to claim.
The third step is to claim. You need a Technical Justification for HMRC and a list of qualifying costs. Your R&D Tax Specialist will help you to complete the Technical Justification and will advise you on what qualifying expenditure to include in your claim. This should not cost you more than 12.5% of the actual credit successfully claimed. (Be careful, some R&D Tax firms charge 20% or more and like to impose their own Tax Accountant on you, often with additional charges.)
The fourth step is to instruct your own Accountant to submit the claim. The good news is that it usually only takes 28 days for the cheque to arrive and you can go back two years to retrospectively recover R&D Tax credits. (The average claim is £43K for SMEs, according to HMRC)
And so…..If you manufacture (or have manufactured for you) Test or Measurement equipment, you really should take the first step and check out whether you can be claiming. Contact RandDTax now for full details of what you may be entitled to.