We are always keen to underline how beneficial R&D Tax Credits can be to companies by adding back vital funds to businesses’ cash flow – but especially in the current environment.
So many companies don’t believe that they or their sector are eligible and so the Tax Credits go unclaimed; or others view it as some sort of tax scheme or ‘dodge’ that they shouldn’t get involved with. Nothing could be further from the truth – HMRC brought in the scheme to encourage genuine research, innovation and development by UK SMEs.
Essex Commercial Finance work with tax specialist partners to enable us to help clients that are eligible for R&D Tax Credits to claim for relief or refunds that can add vital funds back into the company to support their ongoing business activities.
Eligible Limited Companies can claim a reduction in their corporation tax or a refund for ‘innovation’ in the work that they conduct – and the work does not have to have been successful or completed to qualify.
What is eligible ‘innovation’?
You don’t have to employ ‘men in white coats’ necessarily to be eligible – though they would probably qualify if you did!
Some examples of qualifying activities:
- Projects involving design and/or implementation elements
- Overcoming sector or industry problems in your work
- Achieving your goals by changing processes, materials, design, services or devices
- Your processes show you getting from starting to finishing points in your work
- An element of trial and error to achieve a positive outcome
- Employing technical staff in your business
Is my sector eligible?
The majority of companies don’t consider themselves eligible for R&D Tax Relief – talk to our expert partners and they can quickly assess if you have the basis for a claim.
The following are areas that companies commonly claim from – but this is NOT an exclusive list so please talk to us about your eligibility:
- Manufacturing, Sciences, Automotive and Engineering
- Construction, Demolition and Waste Services
- Technology, IT and Software
- Hospitality and Food & Drink
So many companies don’t believe that they are eligible and so the Tax Credits go unclaimed; or others view it as some sort of tax scheme or ‘dodge’ that they shouldn’t get involved with. Nothing could be further from the truth.
What can be claimed for?
You can claim for any qualifying project costs from the company’s last two financial years, including:
- Your related staff costs, including some tax and benefits
- Contract staff – % limits apply here
- Utilities directly used in the R&D activities
- Computer software – some % of sub-contracted R&D costs
- Materials directly used in the R&D process
How do you confirm if you are eligible and claim?
ECF will take some outline details about your business and activities and make an introduction for you to our tax specialist partners.
If you are uncertain about your eligibility – let us make sure for you!
We do not charge you in relation to R&D Tax Credits at any stage, regardless of the outcome of your claim.
Our partners only levy a charge if you are successful in achieving tax relief or tax credits, so there is no cost and no risk to your company in exploring if you are eligible, only upside with a successful claim!
The R&D Tax Relief scheme is an opportunity for eligible companies to add vital funds and value back into their business at a crucial time for everyone in the UK economy.
Please contact us today – it really isn’t a day too soon to get this assessment started for you.
firstname.lastname@example.org / 01245 979 100