Are you claiming R&D tax relief?

Research & Development

Are you claiming the tax relief?

Did you know you can claim tax credits for research and development as part of a scheme that has been running for over 20 years? Mike Waterfield, director at accounting firm Torr Waterfield, explains

Many businesses are always looking for new ways to develop with new products and processes. In the right situation, Research and Development Tax Credits are a UK tax incentive that can provide valuable support.

Assisting clients to make a claim for research and development (R&D) tax relief since the launch of the scheme some 20 years ago, we have come across many diverse and interesting projects. We are constantly amazed by the range of innovation in the businesses we work with and admire the dogged enthusiasm of the business owners who constantly strive to push the boundaries of what is possible within their respective industry.

Many companies fail to appreciate the breadth of activities that may be considered as R&D, meaning that they miss out on tax refunds, tax savings, or cash credits (for loss-making companies).

If you can answer yes to the following questions, then there is every chance that your company may qualify for R&D Tax Credits.

Do you:

◆ Employ engineers, scientists or IT personnel? ◆ Undertake engineering or software design or feasibility studies for other companies or yourself? ◆ Develop (create or improve on) products, processes, materials, devices, services or systems for others or yourself?

Remember, whatever it is your company is looking to introduce, it does not have to be something brand new – it does not even need to be particularly innovative (doing work to replicate the specifications/ effects of existing products and/or processes but in a fundamentally different way is equally valid).

R&D tax relief applies equally to product, process and systematic improvements. The key thing is that the solution is not readily deducible, ie there were significant uncertainties around the potential for success and the company faced challenges and setbacks when attempting to realise the improvements (specifications and/or functionality) sought.

Most importantly success is not required.

If you would like to explore this further, please contact me to arrange for one of our R&D tax relief specialists to speak with you by emailing mike.waterfield @torrwaterfield.co.uk.

THE KEY THING IS THAT THE SOLUTION IS NOT READILY DEDUCIBLE