Blog

Small and medium enterprises claim R&D relief worth over £1bn and rising!

Date: 18th November 2016

The latest statistics indicate that the number of Small and Medium Enterprises (SME’s) making R&D tax credits claims is rising year on year, with a total pay-out value of over £1b in 2014-15. “A SME may claim a higher rate of relief than a large company.  Also, a SME which has no tax bill to reduce may claim a cash payment instead.” SMEs are also gaining an increasing share of the total amount paid out by Government.  In 2014-15 the...
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How to make a successful R&D Tax Credit Claim

Date: 15th November 2016

HMRC are very supportive of correctly presented Research and Development Tax Credit claims. A strong claim requires just three elements: A technical justification A summary of the qualifying costs being claimed A completed CT600 form Correctly presented, the claim will normally progress smoothly, usu...
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R&D Tax Credits – the Myths and Misconceptions

Date: 15th November 2016

Let’s explore why many SMEs, who should be claiming,  just aren’t….. Here are eight common myths and misconceptions Claiming is risky and may lead to broader tax investigations. HMRC do not want claims to succeed so make it hard to qualify. We need to own the IPR in order to claim....
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Patents, Patent Box and R&D Tax Credits

Date: 9th November 2016

Taking out a patent is a medium term activity for an innovative business.  It costs money now but the protection of your innovative product has a long term payback.  You should discuss your interest with a Patent Lawyer in the first instance. Patent Box is a new BIS initiative which allows your patented product to generate profits at a reduced rate of corporation tax. It is being phased in now and requires professional advice on how to set up a method of isolating and recordi...
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Making a profit or loss? It doesn’t matter for R&D Tax claims…

Date: 9th November 2016

R&D Tax Relief is meant to encourage innovation and the SME scheme particularly, is targeted towards small and medium sized businesses which may be in profit or making a loss.  It just doesn’t matter and, if you are in loss, this can be a surprisingly rapid source of much needed cash. Typically, the claim is processed with a cheque from HMRC arriving in less than 5 weeks….straight onto your bottom line, free of tax.  It can transform a small struggling busine...
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Research and Development Tax Relief for Small Companies – A good thing?

Date: 2nd November 2016

The latest statistics from the National Audit Office related to R&D Tax Credits for the year to April 2015 show: SMEs benefitted by over £1billion for the first time.  A 23% increase on the previous year. Just over 18,000 SMEs and a further 2,000+ Large companies benefitted by in excess of £2.45Billion.  SME growth rate was fastest by some way. One of our Shareholders and a Principal Consultant with RandDTax, Tim Walsh BSc, MBA, CT...
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Oil and Gas Sector. I manufacture ATEX Certified equipment

Date: 2nd November 2016

Should I be claiming R&D Tax Credits? The Oil, Gas and Petrochem market has become even more competitive during 2015/16 with plunging oil prices impacting all suppliers in the sector. There are simply less orders being placed and competition has increased for all that remains. As a consequence, your cash reserves may have dropped and you are possibly having to reduce staff costs.However, you will probably have been incurring costs for product developmen...
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R&D Tax Relief –Software for the Oil and Gas sector

Date: 2nd November 2016

We develop software for the Oil and Gas sector – Should we be claiming R&D Tax Credits?The Oil, Gas and Petrochem market has become even more competitive during 2015/16 with plunging oil prices impacting all suppliers in the sector. There are simply less orders being placed and competition has increased for all that remain. As a consequence, your cash reserves may have dropped and you are possibly having to reduce staff costs.However,...
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Interpreting Brexit-A Round Table Evening

Date: 5th October 2016

Many of our clients have expressed concerns about the operational implications that different options around Brexit could have on their companies. To help with this an event has been organised on the evening of Thursday 27th October 2016 in London at the Marriott County Hall Hotel. The speaker is John Higgins CBE, Director General of DigitalEurope. Digital Europe covers a much wider area than simply EU countries and is the umbrella organisation for all European technology related trade bodies...
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Is R&D tax relief working?? – Part 1

Date: 18th May 2016

As an RandDTax consultant, I am also in my final year of an MBA programme and I am undertaking a research project entitled Research and Development Tax Relief for Small Companies – A good thing? From our client base of over 600 I have taken a random sample and sent out a short questionnaire to explore whether R&D tax relief has influenced investment decisions in SMEs. I am also analysing the financial data to see if there is any correlation between R&...
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