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R and D Tax Credits

Assistance with R&D Tax Credits

 

Research and Development Tax Credits are an extremely beneficial tax relief available to UK businesses seeking to improve their products or production processes through an advance in science or technology. A common misconception is that the relief is targeted at ‘men in lab coats’ whereas, in practice, the relief is much broader.  Since the relief was introduced in 2000, research has shown that many businesses do not realise the full scope and potential of the relief so fail to claim all they could, or even fail to make a claim at all.

There are two R&D regimes – one for SMEs and another for large companies. Companies can usually claim under the SME scheme provided the company or group has:

-          Fewer than 500 employees and either

-          Turnover of less than €100m, or

-          Gross assets less than €86m.

R&D for SME’s

Profit-making companies can claim relief for qualifying R&D expenditure via an enhanced deduction, whilst loss-making companies can choose between claiming the enhanced deduction or a payable tax credit.

For SMEs, expenditure incurred on or after 1 April 2015 qualifies for R&D relief at 230% with the value of the payable credit being 33.35p per £1 of qualifying spend.

R&D for large companies

Large companies can claim relief for qualifying R&D expenditure via the R&D Expenditure Credit (RDEC) scheme.  The benefit is deemed to be delivered in the body of the profit and loss account as a taxable credit of 11% of qualifying expenditure.  The after tax benefit (currently 8.91%) will either reduce the tax payable, or can be claimed as a payable credit by companies that do not have a corporation tax liability in the year.

We recommend contacting the following British Marine Members for further assistance with R&D Tax Credits:

Government Grant & Tax Consultants Ltd

GGTC are R&D Tax Credits Specialists and maximise R&D tax credit claims for a national client base across a breadth industry sectors, including Pharmaceuticals, Software, Engineering, Manufacturing, Life Sciences, Automotive, Aeronautics, Construction, Design, Energy, Food & Drink and Healthcare & Education.

Contact Brian Maslen, Client & Major Account Manager at GGTC

Tel: 07799 696310 or Email: brian.maslen@ggtc.co.uk

Falcon Special Projects Ltd 

Falcon provides a hands on personalised R&D Tax Credit service. As a technology company developing innovative products in its own right, Falcon is able to identify and capture the complete R&D cycle from a clients point of view, simplifying the process and reducing demand on client’s accounts and engineering departments, & maximising claims. With over ten years of successful claims in Motorsport, life sciences, IT, marine & engineering sectors, Falcon offers a no win no fee service.

Contact Geoff Kipling, Director at Falcon

Tel: 07941 393614 or Email: gk@falcon-sp.co.uk

Smith & Williamson LLP

Smith & Williamson have a team of specialists with a reputation for providing solutions. They are extremely enthusiastic about the work they do for clients and enjoy getting to know the activity of the companies they work with to identify qualifying projects and costs on which to claim an enhanced tax deduction for Research & Development tax relief. The team are also involved in all aspects of intellectual property taxation and help companies calculate the potential tax benefit from electing into the Patent Box regime. Smith & Williamson work with many marine and manufacturing companies acting as their trusted advisor in all matters relating to accountancy and taxation.

Contact Paul Duckworth, Partner

Tel: 07917 212188