Even though R&D tax relief has been available since 2000, we still have clients ask us if it is legitimate.
It can sound too good to be true, but trust us R&D tax relief is the real deal, we've been successfully claiming for our clients for 8 years.
On average companies who successfully claim R&D relief get between 26% and 33.35% of their development expenditure back. You get more money back for every pound you spend and with our average client claim standing at £40,000, it’s definitely not something to be sniffed at.
It’s also true that huge amounts of R&D tax credits are left unclaimed every year, allowing overseas competitors to steal a lead in R&D and innovation.
Since being introduced, successive governments have consistently made the relief more attractive in an effort to incentivise businesses to develop new products.
The rate of relief has consistently increased under all political parties, evidencing a recognition that this is a valuable tool for stimulating the economy. You get more money back, for every pound you spend and at the same time the criteria for research and development expenditure has been expanded, making it a more attractive proposition.
You can even claim if your project is unsuccessful as it shows that your work demonstrates a level of uncertainty involved in project, making it eligible.
Is R&D relief just for the UK?
The UK is not on its own on supporting this with an R&D relief. Every major economy has an equivalent scheme. They have this trend and the move is towards rewarding and supporting innovative companies that invest in product development.
This is all part of keeping pace with our global economy. And there is a general recognition that manufacturing is cheaper in the Far East. To compete with low cost manufacturing, companies are adding value through design and innovation – resulting in the creation of the knowledge economy.
If you are in the situation that your products are being made in the far east or elsewhere, you may still be able claim tax relief. The government recognises the investment made where costs from the development are incurred by the UK company.
Making a R&D claim
Making the actual claim can be a complex process, which is why companies like us are here to help you!
It pays to be aware of all the elements you can claim for so you can maximise your relief amount. We’ve been doing this for a decade now and have a 100% success rate, which makes us feel pretty proud!
We do also work alongside accountants, and our experience is that as they don’t always understand the full extent of the claim. It’s not just about tax; there also needs to be an understanding of the technical nature of your work and not everyone is a specialist in what you do.
It’s not just about people in white coats with clip boards and safety glasses – although you can wear them if you choose!
Over the past decade we’ve worked with companies across a variety of industries including; software, robotics & automation, agriculture, quarries, food, aerospace and gas & oil.
Is your business eligible for R&D tax relief? Give us a call on 0115 842 0402 and we can tell you!