Although Research and Development (R&D) tax credits have been around for the last two decades it is still very much an area that is widely unknown or misunderstood. This may be due to its name giving the wrong impression, the complexity of the process, or lack of publicity. Whatever the reason it shouldn’t stop your business from finding out if you are eligible as we can do the hard work for you.
With only an estimated 20% of eligible businesses claiming R&D tax credits are you one of the 80% who is missing out? Government statistics show that the value of SME claims is on average around £54,000 and for large companies around £273,000.
Who is eligible?
There are many misconceptions of who is eligible and what the term research and development is referring to. It is not what we traditionally associate R&D as being which is lab based as many businesses are more technologically focused and developments in this area are also eligible.
The crucial element of R&D tax credits is that you are trying to achieve something that is technically challenging or innovative against your industry baseline. Many businesses probably do not realise that what they are doing is R&D. To be eligible you must be able to demonstrate that advancement in science or technology has been made and that it benefits more than just your own company.
HMRC is looking for evidence that there was uncertainty and to achieve this advancement research, testing and analysis were needed to develop it. Being able to identify and present this evidence is often what prevents businesses from claiming This is why TEQ Group can help as our technical specialists can do this work for you and they can often find more eligible expenditure than originally expected.
Too complex and difficult
As with many HMRC processes, it can appear daunting and difficult to navigate which is why many businesses don’t claim and why many accountants don’t offer R&D tax credits as part of their service. This is why there are specialist services like ours that provide R&D tax credit support as it requires technical specialists rather than accountants to understand your business and its technology to present it effectively to the HMRC.
HMRC has made several attempts to improve their processes, made it more accessible and provided additional guidance but it still can appear unclear and complex. Applying for R&D tax credits is also a timely process as you can only claim for the previous two accounting years, so it is worth investigating this sooner rather than putting it off.
Not suited to my business
There are no restrictions on which businesses are eligible, so no matter what size or shape your business or the industry you are in, it is worth exploring as long as you have met the eligibility criteria as highlighted above.
As long as your business is liable to pay Corporation Tax, be it a micro business or a large multinational business, you could be eligible to claim R&D tax relief. Many of the businesses that make claims are manufacturers, IT industry, engineering, pharmaceuticals, energy industry, food and drink sector. However, this is not an exhaustive list and many other businesses are eligible.
Help is on hand
At TEQ Group we have worked with a broad range of businesses of all sizes and shapes across a variety of industries to help them make successful R&D tax credit claims. It is one of our core services and we have technical specialists that are highly experienced in finding eligible claims and making the claim process hassle free as we will manage everything for you.
We are so confident that we can achieve a successful claim that we offer our services at no upfront costs and we will only take a fee once your claim has been paid. There really is nothing to lose in contacting us for a free, no obligation assessment. To find out more contact TEQ Group today on 01423 815299 or click the button below and we’ll be happy to offer some advice.
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