Research & Development Tax Relief
The Government regards investment in research & development (R&D) as crucial to economic success. R&D tax relief is designed as an incentive for UK companies to invest in innovation. The relief can be extremely generous and can enable the company to invest its profits in order to grow and be ambitious in its outlook.
PKF Francis Clark’s team of specialist tax advisers and a time served engineer can help you identify and obtain the most suitable relief scheme available. These reliefs can equal up to a third of the associated costs for small to medium enterprises (SMEs).
For example, if we identify qualifying costs of £100,000 this can equal a tax saving of up to £24,700 for a profit making company. If the company is loss making, a cash refund can be claimed as these losses can be cashed in at 14.5%. For the same qualifying expenditure this can be worth up to £33,350 as current year losses, along with the losses created by the qualifying expenditure, can be cashed in.
Many businesses believe they are just performing routine, everyday tasks and therefore are not carrying out R&D. However, you may be surprised at what constitutes qualifying activities.
If you are eligible for R&D tax relief you may also be eligible for patent box relief.
How we can help
- We will determine which of the two schemes apply
- We will either visit you at your premises or have a call to further understand the business, to determine potential projects and qualifying activities
- We will then help you to gather the financial information we need to produce the financial side of the claim
- We will make sure that the claim includes all applicable costs in order to maximise the claim
- We will produce a first draft of both the report and the figures and share these with you for your approval and comment
Processing the claim
- We will work with your tax adviser to help with the preparation of the tax computations and submission of the claim
- We will support you fully in the event of a query from HMRC
Transparent fee – we will agree a fee structure with you that reflects your circumstances.
- A fixed fee quote, where it is reasonably clear that a R&D claim can be made or
- A contingent fee based on the amount of tax benefit secured where the claim is less clear and requires considerably more time investment on our part to determine the existence and amount of the claim
Business sectors that could qualify for tax relief include (but are not limited to):
- Food & drink
- Agriculture – download our Agriculture R&D Tax credits brochure
- Software development
- Manufacturing & engineering
- Construction & architecture
- Waste management & recycling
- Chemical, life sciences & healthcare
- Creative enterprises such as film, television, animation and video gaming
For more information download our brochure , which outlines what is eligible and how it works.