R&D TAX CREDITS
If you’ve successfully discovered (R&D) research and development tax expenditure, then you might be wondering how you can put together a claim to receive a tax credit from HMRC
R&D tax credits are an initiative taken by the UK government to reward UK companies for investing in innovative projects which result in advancement in science and technology. This means if you develop or enhance new or existing products or processes, you may be 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 or a Corporation Tax reduction. The scope for identifying R&D is enormous – in fact, it exists in every single sector. And if you’re claiming for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.
The R&D incentive can be invested back in the business to boost their R&D and ultimately result in growth. However, the process of claiming the grants and staying updated about the government’s latest rules & regulations can be potentially daunting. This is where we can help you.
Get in touch!
This is where the importance of Wim Accountants comes into play!!
We have a team of professional Chartered Certified Accountants and Chartered Tax Advisors possessing the necessary skill sets to get the job done. We also have a team of consultants who help us to authenticate the project and its advancement in science and technology. With our exclusive methodology, we ensure that you get the highest government funding resulting in the growth of your business. We identify the qualified expenditure from every productive business area such as employees, products, subcontractors, and technology. Based on this, our team creates a technical report, evaluating the benefit to be included in your company tax return. We even adhere to the queries from the respective tax authority that is free of cost with every claim submission.
We handpick individuals with the right specialisms. These include chartered tax advisers or accountants, sector specialists and members of our quality assurance.
After an initial conversation to confirm that you are eligible for the R&D tax credit, we put together a bespoke team matched to your business needs.
In the entire process, our holistic approach not only ensures your tax incentive but also does not compromise HMRC’s requirements. Our team will create a robust and fully-maximised R&D tax credit claim in four to six weeks – it then goes to HMRC.
We identify your qualifying activities and costs and maximise your claim by uncovering the full extent of your qualifying activities and cost. Our team of sector specialists will work directly with the science or technology experts in your business to determine the full extent of your qualifying R&D. The tax specialist will work directly with your finance team to identify all of your relevant qualifying costs.
As a leading online platform in London, we understand your company’s challenges; hence you will find an unparalleled service from us.
FAQS FOR R&D TAX CREDITS
The R&D Tax Relief Scheme
Research and development (R&D) tax credits are a government incentive introduced in the year 2000, which is 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 cash benefit of an R&D claim varies depending on if the company is loss-making or profitable in the year. On average, the benefit received is 25% of the R&D project spends; however, it can vary between 14.5% and 33% if your company is loss-making.
Tax benefit can be obtained regardless of how your company is performing at the end of a financial year. If a business is making a profit, then R&D claims can be in the form of Corporate Tax reduction, and if a business is incurring losses, R&D claims can be in the form of valuable cash credit.
If R&D expenditure involves carrying out qualifying activities, you can claim tax relief regardless of whether you succeed in your project or not.
R&D Tax Credits Eligibility
What's an SME?
In short, a SMEs (Small-Medium enterprise) comprising for R&D tax relief purposes is a company which together with other group and linked enterprises does not exceed:-
• 500 employees
• €100m turnover
• €86m balance sheet
Innovation grants and R&D tax credits can be used collectively, but being a complex process, it requires careful planning. Hence in order to enhance your future position, you must hire an expert. If you are a fast-growing organisation that harnesses advanced technologies, significant cash inflow is mandatory for operations to run smoothly. There is a common misconception about grants and R&D tax credit not being used simultaneously. This, however, is not true. In case you are finding additional sources of funding, then considering R&D tax credits can result in a remarkable growth of your business.
WIM Accountants Role
Who deals with HMRC for the R&D Tax credit?
We will submit your report and amend your Corporation Tax return (CT600), incorporating your R&D tax credit calculation – unless you prefer us to help your accountant to do so.
We will follow up with HMRC to check on your claim’s progress.In the unlikely event that HMRC opens an enquiry relating to your R&D tax credit claim, we will resolve this for you at no extra cost.
Why should I not just use my accountant to submit a claim?
The process of a tax claim can be technical, which requires professional expertise that might be beyond the scope of your accountant. With WIM’s specialised team results are guaranteed.
Can you work with my accountant?
Yes, we can collaborate with your accountant.
General questions
How long does it take to get my tax credit?
It typically takes HMRC between four and six weeks to process a claim, although RDEC, which are for large companies, can sometimes take a little longer. Your R&D tax credit cash benefit is paid directly into your company bank account.
If your business is profitable, your overall corporation tax bill will be reduced, or if you have already paid your bill for the period, you will receive repayment.
Does the sub-contractor have to be in the UK?
Not necessarily.
how much do you charge?
Give us a call to discuss the fee, which is only payable if your claim is successful and the funds are wired from HMRC to your company bank.