Research & Development
Is your company involved in manufacturing, design or 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 35,000 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 despite the maturity of the scheme, 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 230% of the R&D expenditure. This equates to a tax benefit of around 25p for every £1 spent on R & D.
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.
Large companies carrying out R & D receive a tax credit of around 12p for every £1 spent on R&D. This Research and Development Expenditure Credit is payable to the company net of tax and also can be surrendered to other group companies.
Beavis Morgan LLP’s specialist team of tax and engineering professionals has made many 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