Research and Development
Is your company involved in manufacturing, design, development of new processes/software or using existing processes or technology in a unique manner?
If so, there may be valuable benefits available to your company under the government’s R&D Relief Schemes.
Following the release of figures compiled by HMRC and the Office of National Statistics, a recent survey suggests that only 17,000 out of 150,000 potentially qualifying companies that undertake research and development activities are making claims for R&D tax relief.
It is suggested that the low take-up of R&D tax relief may be as a result of a lack of awareness of the available reliefs, or a misconception that R&D is restricted to certain industries e.g. medical or scientific. There is also a general concern as to the amount of time and resources required to compile a formal claim.
Companies engaged in qualifying R&D are eligible for an enhanced Corporation deduction equal to 225% of the R&D expenditure for SMEs (increasing to 230% from 1 April 2015) and 130% for large companies.
For loss-making SMEs incurring R&D expenditure in the year, it is possible to surrender some of the loss to HMRC for a tax repayment of around 33p for every £1 spent on R&D.
From 1 April 2013, large companies which are loss-making are now also able to surrender their losses to HMRC for a tax credit of around 10p for every £1 spent on R&D (increasing to 11p from 1 April 2015). This credit is payable to the company net of tax.
Beavis Morgan LLP has made a number of successful claims on behalf of our clients across a variety of sectors including Software Development, Online Gaming, Manufacturing, Engineering, Pharmaceutical, Advertising and Telecommunications.
The reliefs can be extremely beneficial for those engaged in qualifying R&D, and Beavis Morgan can help your company maximise the benefits of the reliefs by;
- Determining whether you are a qualifying company;
- Helping you to assess whether any of your activities qualify;
- Reviewing your activities to make sure you claim all that you are entitled to;
- Working closely with you to prepare and submit your claim to HM Revenue & Customs
- Research & Development - Tax Credits for SMEs
- Capital allowances planning
- Seed Enterprise Investment Scheme
- Research and Development
- Patent Box
- Creative Sector Tax Reliefs
- Enterprise Management Incentive ("EMI") Options and Entrepreneurs' Relief
- Capital Allowances: Embedded Plant & Machinery