We’re saving our clients well over £5 million via R&D Tax Relief every year – how much could we save you?
It is a fact of life that all businesses need to innovate to remain competitive. Let’s face it, what business owners these days think that they can make their business successful by continuing to do the same things in the same way?
Innovating necessarily involves investment of money into personnel and materials which often does not reward the business until the medium to long term.
R&D Tax Relief exists to help companies to fund the cost of investing in new products, services and processes. Do not believe the myth that this relief only applies to white coat scientists in laboratories – the application of this relief is so much broader than that.
Many business owners tell us ‘this isn’t R&D, it’s just what we do’. As directors running your businesses, it is easy to assume that the work you carry out on a daily basis is usual and what others in your industry are doing. The likelihood is that you, like other business owners, are using your own knowledge and experience to develop new ideas and while your initial approach might be the same, your concepts will be unique to you and the results will be very different. Even changes to your own internal IT systems may qualify for relief.
Here are just a few perhaps less obvious examples of where the relief has applied in the past for some of our clients, enabling their businesses to recover tax from HMRC to help invest in even more new products and services:
- Adapting manufacturing methods (both processes and machinery) to improve efficiency
- Combining different off-the-shelf software packages in unique way
- Integrating websites and web portals with CRM and accounting systems
- Alterations to building design for energy efficiency
- New methods to improve speed and quality of excavation and reinstatement for infrastructure works
- Designing new recipes for improved shelf life and specific dietary needs
- Devising and commercialising uses for waste materials to aid the environment
In a nutshell, if your business is trying to do something different without any certainty of a successful outcome, you should be considering whether R&D Tax Relief is appropriate for you. It may even make the difference between the idea being financially viable or otherwise.
The claim process can appear tortuous at first glance but we help our clients by adapting our approach to make it as painless and efficient as possible, and the rewards are always worth the effort.
There is no doubt that there is a lot of innovation going on across Gloucestershire’s businesses, and many times those carrying out this innovation don’t even realise they are doing it. It’s worth taking a step back and analysing your activity occasionally, and you may find it is worth investigating a claim.
James Geary is Client Director and heads up the Corporate Tax team – he can advise you about the potential to claim R&D Tax Relief for your business and offers a no-obligation free advice clinic, please call 01242 776000 or email firstname.lastname@example.org.