Research and development Tax Credits is a valuable business incentive that's available the United Kingdom.
Precisely what is R&D tax relief?
The Research and Development tax credit scheme benefits firms that are investing in seeking innovation. This incentive was initially brought in in the year 2000 to reward forward-thinking companies.
For every £1 put into a qualifying endeavour, you can recover up to a third of that pound.
In short, for each and every £100k invested in a project, you will get up to £33,000 back.
You may recover between 25% and 33% of your eligible costs back.
The incentive was launched at the dawn of the new millennium to inspire more firms to put money into seeking new and improved products, services, devices, systems etc.
For every £1 HMRC grants back to a business, they reason they get a further £7 on a multiplier basis.
The truth is, when your company receives a successful R&D award, you will pay your staff's wages, and put money into other things that carry duty.
The paychecks are spent on items that are generally taxed for example, petrol, alcoholic beverages, tobacco and so forth.
That is certainly a clear case of HMRC giving to receive. It's great for the economy and win/win all round.
So how can I claim Research & Development tax credits?
Whenever you have invested company money into enhancing your products, services, systems, devices etc; then you might be eligible to claim.
You might even meet the criteria to claim once you've made an effort to improve your current ways of doing things. You need to have put your money into qualifying projects. As with all legislation, there is many grey areas that can create a wealth of problems in the future if not handled correctly.
HMRC is now pursuing large numbers of companies who've submitted incorrect claims.
This shows the importance of using specialists to provide peace-of-mind that things move forward without any problems.
Our clients benefit from an end-to-end service that limits your time involved so that you can get on with running your business.
We have an excellent working relationship with HMRC as we work to a proven methodology that presents your case in the best light possible.
We have 100% success rate to date and work closely with members of the ICAEW and ACCA providing support to them and their clients in this very complex area of tax law.
What things will qualify for Research & Development tax relief?
When you happen to be unclear about the the best way to move forward this could highlight a potential claim.
Whenever there has existed a degree of significant technical or even scientific uncertainty which had to be remedied this could be a flag to dig a little deeper.
It is vital that your company has attempted to enhance its products and/or services. You may do this by trying to overcome the uncertainties in the development project.
Just how far back are you able to claim?
You'll be able to recover eligible project spanning the last 2 open tax years. If you fail to claim your R&D award will be lost forever.
If you have invested in improving your business since the year 2000 and failed to claim, you could have lost out on tens-of-thousands, if not hundreds-of-thousands of pounds
HMRC is very strict on this two year limit. If your tax year end is approaching, contact us now so you don't miss out.
Exactly how much is an R&D claim worth?
Our average client award is now over £45,000.00 which can be back in your organisation in as few as six to nine weeks.
Please be careful of so called 'specialists' claiming their average award is higher than this.
It is widely accepted that the average awards tend not to deviate that far from this figure.
Most of the time funds will arrive by way of an immediate cash lump-sum and/or significant reductions in your CT liability. This has the effect of improving your company's bottom line quickly and may be used to fuel future projects as a replacement for, or in combination with low-rate small business loans.
What is the value of a successful R&D award for an SME in profit?
An small to medium enterprise (SME) in profit should be expecting reductions in CT liability of 25%. You can certainly see why this incentive is increasing in popularity.
Our award winning process helps to strengthen your business.
We work on a 100% success only basis, so should we fail to identify a claim then there is absolutely no fee for our experts time. Risk free.
So what is the value of a successful Research and Development claim for a loss-making SME?
A loss-making Small to Medium Sized Enterprise can bring about a quick cash-injection by surrendering a loss to HMRC.
A loss-making SME can expect to recoup around 33 % of their qualified project expenditures back. E.g. £33,000.00 for each and every £100k of qualifying spend identified.
When you realise that up to one hundred percent of employees salaries may be recovered you understand how fast the numbers stack-up in favour of your business.
R&D Costs You Can Recover
Reasons to trust our specialists
Who is Hamilton Wood and Company?
We are one of the UK's leading tax relief specialists. Stimulating UK Businesses is why we exist. We are on your side. Our experts work tirelessly to help strengthen your business.
We help your business recover up to a third of your historic business improvement costs back.
Had your next 'eureka' project idea? We also provide access to low-fee business funding to help your business succeed.
To learn more about us, click this link.