Blog

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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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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News update for accountancy Firms and companies claiming R&D Tax Credits

Date: 4th May 2016

New Template on supporting narrative and date requested with claims. HMRC have now introduced a new Template covering the supporting narrative and data they want to see with R&D Tax Credit claims. This includes the following information (and more) for R&D work carried out in the relevant accounting period for each project: • Explanation of advances in knowledge or capability in science or technology sought. • Description of scientific or...
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Precision Engineering and R&D Tax Credits

Date: 22nd April 2016

RandDTax have successfully prepared claims for Precision Engineers with cash credits or corporation tax relief of up to £200K being received from HMRC for Research and Development qualifying projects and associated costs. This is a specialist area and requires a combination of understanding the technology and identifying the qualifying costs. Identifying what projects comply, and the qualifying costs acceptable to HMRC, is exactly what RandDTax do. We apply robust qua...
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