R&D tax credits
R&D tax credits
Research & Development (R&D) tax credits are a UK government initiative to reward business innovation and promote growth through generous tax incentives. These can apply in almost any industry but are typically prevelevant in software engineering, network infrastructure, game development, construction and civil engineering, manufacturing, food technology, medical diagnostics and pharmaceuticals.
A successful R&D claim could generate a significant financial benefit, leaving you with more to invest in taking your business to the next level.
Despite their tax saving potential, HMRC’s guidelines for R&D Tax Credits are complex. Businesses often claim for ineligible activities or miss out on activities that do qualify.
Every R&D Tax Credits claim submitted to HMRC should be accompanied by a detailed technical report that establishes how each project complies with the legislation and the Government’s guidelines. This report should detail:
- The exact nature of the project’s technical and/or scientific uncertainties,
- Who has been involved in the research, and
- How each R&D activity meets the current legislative requirements.
Producing this report is time-consuming to produce and technically challenging. Because a claim that does not clearly explain how its technical elements meet the R&D criteria may attract further scrutiny, potentially fail or attract penalties, businesses are understandably cautious. KAG’s R&D Credits service is designed to mitigate the risk and maximise the returns on your R&D investment.
Our specialist R&D Tax Credit partners are experts at optimising results, with a proven track record for delivering a 100% success rate for eligible companies securing savings ranging from tens to hundreds of thousands. The results speak for themselves.
The R&D technical analysts, finance experts and business consultants work in partnership with KAG, identifying and claiming R&D activities on your behalf in order to maximise your claim. The key to our success is the ability to identify activities that might otherwise be assumed to be normal or routine. The KAG R&D service ensures all of your qualifying activities are identified and claimed. Our team also has extensive experience preparing HMRC-compliant reports and full supporting documentation.
Materials and consumables
GETTING R&D TAX RELIEF RIGHT
Employee costs can be claimed back, and this includes salary, Class 1 NI contributions, overtime and pension contributions – a significant amount for most businesses.
You can claim back up to 65% of your subcontractor and agency costs, providing those individuals have no connection to your business. If they are connected, you may claim 100% of costs.
Cost of materials and consumables used in your activities can be included, and a percentage of your utilities, including lighting, heating, electricity and water etc.
You can even include the cost of any computer software/licensing used specifically for your R&D activities, regardless of whether they are specialist or not.
Your business could qualify for R&D Tax Credits and receive between 25-33% of its key expenditure back if:
Your business is a limited company and subject to either UK or ROI corporation tax
You have been actively working to overcome a difficult problem or challenge
The approach to solving this problem was uncertain to a competent individual in the field
The outcome of your work may lead to an advancement in knowledge or understanding
In short, if you have been attempting to make an appreciable improvement to a product, process or service, get in touch and let’s see if we can get you some benefit for your innovation.
MAKe INNOVATION PAY
MAKe INNOVATION PAY
Optimise your R&D Tax Credits. Fill in the form below or call the KAG team on 01786 542175 to book your free consultation.