R&D tax relief exists to encourage investment in research, development and innovation by UK companies and not just those working with new technologies, which is a common misconception.
Many businesses innovate within their own sectors and are missing out on tax refunds, tax savings or cash credits (for loss making companies). It’s not just about chemists in white coats or rocket scientists.
Take a look at some examples of successful claims our R&D specialist has generated:
|Industry||Examples of advances sought||Cash/Tax benefit|
|IT Systems||Finding out how to manage increasing data volumes without compromising end-to-end latency||£20k of tax saved over 3 return periods.|
|Plastics engineering||Finding out how to achieve a smaller extruded profile to achieve production cost efficiencies with sufficient strength that was capable of being manufactured with repeatability.||£243k of tax saved over 2 return periods.|
|Packaged wipes||Developing a process to impregnate cheaper materials with formulations without jeopardising the material strength or performance in use.||£50k of tax saved over 2 return periods.|
|Equipment engineering||Finding out how to construct plant and machinery that is lightweight enough for single person manual operation and maneuver.||£114k of tax saved over 3 return periods.|
|App development||Developing a responsive, fluid framework that allows content to be accessed across all mobile and desktop devices.||£18k of tax saved over 3 return periods.|
- employ engineers, scientists or IT personnel?
- undertake engineering or software design work / feasibility studies for other businesses or your own?
- develop, create or improve on products, processes, materials, devices, services or systems for other businesses or your own?
Whatever your business is looking to introduce it does not have to be brand new or particularly innovative. A claim could be just as valid if you are replicating the specifications/efforts of existing products and/or processes but in a fundamentally different way.
R&D tax relief applies equally to product process and systematic improvements. The key thing to remember is that the solution needs to be not readily deducible, for example if there were significant uncertainties around the potential for success and the business faced challenges and set backs when attempting to realise improvements in any specifications or functionality.
Remember a successful outcome is not necessarily required.
Get in touch today if you run a business or have clients who might be eligible to claim R&D tax relief.