In 2000 the government introduced a scheme to encourage scientific and technological innovation within the UK.
R&D relief is a Corporation Tax relief that may reduce your company's tax bill, or result in a cash refund.
For tax purposes, R&D takes place when a project seeks to achieve an advance in overall knowledge or capability in a field of science or technology. This would be in the form of researching and developing a process, system or product.
R&D relief allows companies that carry out qualifying R&D, which is related to their trade, to claim an extra Corporation Tax deduction for certain qualifying expenditure.
The claim must be made within 2 years from the end of the financial year in with the R&D occurred.
Our full R&D relief claim service for SME's comprises the following steps:
Understanding and documenting the project(s) to be included in the claim
Preparing and submitting an HMRC Application for Advance Assurance
Documenting the costs that qualify for tax relief
Preparing a comprehensive report for submission to HMRC
Providing the necessary information for inclusion in the company Corporation Tax return
The above full R&D relief claim service is available for a fee of 25% of the benefit to the company.
Benefit to the company includes a reduction in the Corporation Tax liability and/or a rebate received by the company as a result of the claim.
Our fee will be reduced to 20% for the same project in future years due to the reduced workload involved.
We ask for an upfront deposit of £1,000 to cover external costs, repayable immediately if the application fails for any reason other than the missing of deadlines due to the clients failure to provide timely information.
No fee is due should the claim be rejected by HMRC, and you can therefore have confidence and peace of mind that you will only incur fees for valid claims, retaining 75% of the value of the claim to be used as operational cash flow.