R & D Tax Credits – Hints on eligibility

So why particularly R&D tax credits? Well if you differentiate yourself through truly innovative USPs, perhaps you deserve some support for your efforts.  Will it hurt to at least ask? This could be money you are entitled to and in those cases you will enjoy the benefits of a nice lump sum of overpaid back tax.  Such an injection of funds; with no strings attached, could for example be deployed on a project to accelerate revenue generation and thereby to produce more profit – a virtuous circle indeed!

R & D TAX – Helping to Fund Innovation

Terry Toms

Could you benefit? Request a free R&D Tax Audi

According to the latest government statistics more than 8400 SMEs have benefitted from R&D Tax Credits by an average of in excess of £43,000 – and since then the rate at which R&D Tax Credits are paid has increased by more than 60% and qualifying conditions are now much less stringent than they were. There has never been a better time for SMEs to invest in developing new products, processes, services, devices or materials. Your company does not even have to be paying Corporation Tax in order to benefit – and you can often claim for the last two financial years. The claims process need not be arduous and HMRC will often pay out within 4 or 5 weeks.

Yet – Less than 0.20% of SMEs made claims. In the last six months we have helped more than 50 companies make first claims. These have been worth between £20,000 and £200,000 to those SMEs. R & D Tax Credits can be claimed by almost any limited company. Here a few examples, some of which may not be that obvious:

  • A Test and Calibration specialist developing an innovative air flow testing device and deep cleaning processes for heat exchangers.
  • A legal company developing award winning, innovative, paperless conveyancing processes.
  • Numerous Software development companies developing innovative Cloud based eCommerce and eBusiness systems.
  • A construction company developing project and work control systems using mobile and internet technologies to transform processes, and profitability in managing large refurbishment contracts.
  • A winch design and manufacturing company, developing innovation solutions where none were previously available.
  • A financial services business able to respond with innovative products and marketing/sales methods through the rapid development of eBusiness software.
  • A firm of bailiffs able to develop portable and web systems which transform operational processes efficiency and cash collection rates.
  • A software development tools company able to create an innovative development platform.
  • An injection moulding company specialising in developing the tooling and manufacturing process to address very complex moulding challenges, creating innovative products and components.
  • A number of companies developing innovative, low cost web hosting services.
  • A conveyor design and manufacturer creating innovative conveyor systems and controls.
  • A highly successful electronics manufacturer winning significant international business, through finding more innovative designs, materials and manufacturing processes.

If you have created truly innovative USPs, perhaps you too can receive some credit for your efforts. Will it hurt to at least ask?

Contact Terry for your free R&D Tax Audit
Article kindly provided by guest author Terry Toms of RandDTax for our April 2013 newsletter.