Read how we helped a family owned sporting equipment business with a £18m+ turnover achieve an overall corporation tax saving in the first year of circa £146k

Our client had made R&D tax relief claims for the two years prior to our involvement, that were put together by a top 10 accountancy firm.

Bedrock was introduced to them by the company accountant and business adviser as they were not happy with the service they were receiving for the following reasons:

  • Inefficient service – information collation dragged on over several months with work being completed at the last minute close to the filing deadline
  • Claim value not maximised – their accountant felt the full potential of all company activities to qualify as R&D were not being fully explored and as such claims made to date had not been as large as they should have been
  • Standard of supporting claims documentation – the supporting claims document was not as robust as it could have been in terms of covering the key areas HMRC needs in order to be comfortable with approving an R&D claim.

Bedrock’s R&D expert met with the company at the beginning of August 2017 and commenced work at the end of that month with a view to preparing a claims document for September 2017 and September 2018 together – one burst of focused work to bring the company right up to date with their claims. This way there was minimal impact upon their on-going business activity.

Working remotely we held a series of conference calls with the professionals working in the business. We helped them identify contributing aspects for the claim from across the business.

The project areas were dynamic covering website development and integrated systems functional performance to partnered product development around sports equipment materials, components, mechanisms and structural characteristics.

Within four weeks, a single supporting claims document had been prepared to cover the positioning of the company as an R&D company, technical write ups to demonstrate the nature and scope of qualifying projects and costing methodologies outlined.

Wide reaching qualifying cost categories were explored in detail, supporting invoices analysed, data logic checked and then presented granularly by project in the report for September 2017 as a comprehensive Appendix, with a section set up ready to update and resubmit to include the September 2018 costs once they were available.

Following Bedrock’s involvement the size of the claim was increased by 30% owing to full consideration of all potentially qualifying projects and explaining/understanding the boundaries for qualifying activities contributing to the R&D work.

This company is slightly unusual in that the MD had sought to employ and grow a team of in-house software developers to support, evolve and integrate the dynamics of underlying software systems, web based technologies and seek omniscient potentials with software based intelligence in end user interactions. This is unique as many businesses outsource software development to specialist providers – here the team is growing in-house to focus on the core business. This gives a great salaried developer base to include in an R&D claim to return cash back to the business.

No two R&D tax relief claims are the same and our specialists are expert in identifying contributing activities. Why not call us today to have a no-obligation initial chat to clarify whether your company could benefit from making a claim.

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Call us on 0115 778 8533 for a free consultation.

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