Blog

We’re a Professional Firm and we paid a subcontractor to develop an IT solution for us. Can we claim R&D Tax Credits?

Date: 30th November 2016

You don’t have to be a technical business to be eligible for an R&D Tax rebate or credit. You could be a Debt Collector or a Bailiff Firm or an Accountant or a Solicitor or an Insurance Broker……but if you have commissioned a subcontractor to develop a unique IT, internet or intranet solution to improve your processes, then you may well qualify for a tax rebate.  The HMRC rules are clear. For a R&D Tax Credit claim, the following should apply:...
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I’m a Recruitment business and I’m claiming R&D Tax Credits

Date: 30th November 2016

There is a common misconception about R&D Tax credits. It doesn’t have to be rocket science; in fact, non-technical companies like mine can also make a claim and significantly reduce corporation tax. It’s about investing in software based applications or processes to make my services more efficient and therefore more competitive, year on year.
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Positive stance on R&D in Autumn Statement 2016

Date: 24th November 2016

Government announces new support for R&D, and will review the R&D Tax regime with the positive aim “….to make the UK an even more competitive place to do R&D.”,  in the Autumn Statement. Extract from full Autumn Statement 1.3      Productivity The Autumn Statement, and the government’s forthcoming Industrial Strategy, will focus on raising productivity to raise living standards for people acros...
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I'm a Precision Engineer – Can I claim R&D Tax Credits?

Date: 22nd November 2016

Does your company design, machine and fabricate prototypes or technically advanced components….or do you develop and manufacture sub-assemblies for your customers. The easiest way to ascertain whether you can claim Research and Development Tax Credits is to ask yourself………  Many Precision Eng...
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We work in the Education Sector. Can we claim R&D Tax Credits?

Date: 22nd November 2016

We are a professional company working in the Education sector providing high quality education, skills and employability provision. We are dedicated to Employability and Skills training in education, the Welfare to Work initiative and to the Creative sub-sectors. Our clients include main UK Government service and provision contractors. We have recently invested in developing a bespoke IT solution which allows us to operate more efficiently, provide high levels of security and gives the...
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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, usually within 28 days of submission by your Accountant. Badly prepared and there will be delays, questions from HMRC and a possible rejection....
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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. We are too small to claim. We are just subcontractors, so cannot claim. We only develop web sites so would not qualify. We...
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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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