Research and Development Tax Credits can be a very valuable tax break for business that are involved in developing new products or processes with over £7.4 billion of tax benefits being claimed since the scheme was established in 2000.
However, the scheme is not just for big companies, with 72% of all claims identifying less than £50,000 of eligible expenditure.
FAB have processed claims in the past for clients, identifying over £1m in tax savings. With a more rigorous approach to compliance and new legislation set to come in 2023 it is more than ever important to ensure that we are promoting best practice and advice for our clients whenever we are considering claims. This is not always the case with some “specialist” R&D firms and more scrutiny will come onto providers who push the tax relief boundaries on R&D claims.
A robust framework and processes will be vital to achieving a successful claim in future.
To make a successful claim you will need to demonstrate that your project:
- Looked for an advance in science or technology and aimed to achieve this advance
- Had to overcome scientific or technological uncertainty, and how you went about this
- Could not be easily worked out by a professional in the field
We can talk through any potential claims you may have to ensure that your project satisfies these conditions.
Once we have identified that you have a potential claim we can then help you identify the costs that would qualify for relief, these include:
- Employee costs (including Employers National Insurance and Pension contributions
- Subcontractors costs (65%)
- Software
- Consumables
We will provide a full tailored report to support your claim and calculate the exact claim amounts, before filing the relevant returns with HMRC.
If you think your business may be involved in any R&D activity please give us a call and we can help you identify any potential claim you may have
