RESEARCH AND DEVELOPMENT REBATES
Rewarding innovation and fuelling growth, R&D tax credits have the power to transform your business.
When developing a new product, process or service, or refining an existing one, R&D is one of the earliest phases. Experimentation and innovation is often rife at this stage, along with risk. The R&D cycle often begins with the feasibility stage, followed by research and exploration and then into design and development, which may include a great deal of time and subsequent building of prototypes.
This will incur a great deal of costs to the company. However, the UK government offers tax relief to organisations embarking on research and development, which can be claimed within the scheme.
Whether you’re already claiming R&D tax incentive or not, Consultiv Utilities can help your business. By working with us, you can unlock R&D tax incentives and ensure you’re getting the reward you deserve for your R&D investment.
What are R&D tax credits?
Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing.
The benefits of R&D tax credits
We are passionate about helping innovative companies realise the full potential of R&D tax incentives so that they can grow. This is because the benefits are wide-reaching.
The government benefits from increased productivity which is good news for UK businesses, and good news for the economy. It can also lead to innovation that can effect positive change on a global scale.
How do R&D tax credits work?
Companies that spend money developing new products, processes or services; or enhancing existing ones, are eligible for R&D tax relief. If you’re spending money on your innovation, you can make an R&D tax credit claim to receive either a cash payment and/or Corporation Tax reduction. The scope for identifying R&D is huge – in fact, it exists in every single sector. And if you’re making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.
Is my business eligible for R&D tax credits?
To benefit from R&D tax incentives, you must:
Be a limited company in the UK that is subject to Corporation Tax.
Have carried out qualifying research and development activities.
Have spent money on these projects.
Who qualifies for R&D tax credits?
R&D can take place in any sector. It occurs in everything from cheese-making to chemical engineering, manufacturing and construction to renewables.
What counts as R&D?
The government’s R&D criteria are purposefully broad. Whatever size or sector, if your company is taking a risk by attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out qualifying activity. This could include:
- Creating new products, processes or services.
- Changing or modifying an existing product, process or service.
If you’re not sure if your project is possible, or you don’t know how to achieve it in practice, you could be resolving technological uncertainties and be carrying out qualifying R&D.
Further detail is available in our article: How do I know if I’m carrying out qualifying R&D?
Within the government’s accepted research and development definition, R&D doesn’t have to have been successful to qualify.
What costs qualify for R&D tax credits?
- Staff, including salaries, employer’s NIC, pension contributions and reimbursed expenses.
- Subcontractors and freelancers. Materials and consumables including heat, light and power that are used up or transformed by the R&D process.
- Some types of software.
- Payments to the subjects of clinical trials.
What R&D tax credit incentive is right for my business?
What incentive you use to make an R&D tax credit claim will largely depend on whether you are an SME or a large company.
SME:
Fewer than 500 staff and either not more than €100 million turnover or €86 million gross assets. Most companies, including start-ups, fall into this category.
Large company:
500 staff or more and either more than €100 million turnover or €86 million gross assets.
If you are classed as an SME for R&D tax credit purposes, your next step will be to make a claim via the SME R&D tax incentive. And if you are a large company, via the Research and Development Expenditure Credit (RDEC).
Why Consultiv Utilities?
To benefit from R&D tax incentives, you must:
Be a limited company in the UK that is subject to Corporation Tax.
Have carried out qualifying research and development activities.
Have spent money on these projects.
Who qualifies for R&D tax credits?
R&D can take place in any sector. It occurs in everything from cheese-making to chemical engineering, manufacturing and construction to renewables.
What counts as R&D?
The government’s R&D criteria are purposefully broad. Whatever size or sector, if your company is taking a risk by attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out qualifying activity. This could include:
- Creating new products, processes or services.
- Changing or modifying an existing product, process or service.
If you’re not sure if your project is possible, or you don’t know how to achieve it in practice, you could be resolving technological uncertainties and be carrying out qualifying R&D.
Further detail is available in our article: How do I know if I’m carrying out qualifying R&D?
Within the government’s accepted research and development definition, R&D doesn’t have to have been successful to qualify.
What costs qualify for R&D tax credits?
- Staff, including salaries, employer’s NIC, pension contributions and reimbursed expenses.
- Subcontractors and freelancers. Materials and consumables including heat, light and power that are used up or transformed by the R&D process.
- Some types of software.
- Payments to the subjects of clinical trials.
A proactive approach
Our process is proactive, and we do all the heavy lifting for you. With Consultiv Utilities, you won’t waste your precious time filling in fiddly spreadsheets or writing up project descriptions. Our team will guide you through the process to minimise your time and maximise value. Whatever your field, our team of specialists will help you to identify all your R&D projects and costs.
Unique HMRC insight
You have access to a level of insight hard to find elsewhere and confidence that your R&D tax credit claim meets HMRC’s expectations. Working in partnership with Murray and Lamb with over 10 years’ experience in Research and Development. Covering claims for all industries and sectors achieving over millions of pounds reclaimed for clients.
Get the credit you deserve
We use a rigorous, continually improving process to deliver R&D tax credit claims that are fully maximised and stand up to HMRC scrutiny. Our exact process and the time required depends on your business and its needs, but our goal is to make it as easy as possible for you.
We’d love to find out more about your business to help determine if you’re eligible.
Speak to our expert team today by contacting us on 0191 250 5557
Or email us at R&[email protected]