Research and Development (R&D) tax relief
So why should your company make an R&D claim, the simple answer is so that you can receive cash back from HMRC.
If your company is or has undertaken an innovative process to achieve a competitive advantage, you could make a claim to HMRC for R&D tax relief to receive cash back or reduce your company tax bill.
Why your company should make an R&D claim
- If your company is profitable – it could reduce your corporation tax bill
- If your company has been profitable - you could claim a repayment of company tax
- If your company is loss-making - you could claim immediate cash from HMRC
- Your company could improve its cash flow
- Your company’s financial statements could appear healthier
What Howard Worth could do for you
- We can help you identify current and past R&D projects
- We can prepare your R&D claims
- We can assist with HMRC queries
- Assist in maximising the benefit from R&D tax losses
- Assist in capturing R&D data by creating internal procedures
- Assist in reviewing and replacing your previously understated claims
What type of companies and sectors qualify?
Innovative companies are not just in the manufacturing, technology, engineering and pharmaceutical sectors. HMRC have received successful claims in the following sectors:
- Professional Services - e.g. Solicitors
- Waste Management and Recycling
- Web Design
What could be classed as an R&D activity?
- Creating new products, processes or systems
- Improving operational and logistical efficiencies
- Making significant improvements to existing products, processes or systems
- Integrating or updating products, processes or systems
Better materials and improvements to the product and manufacturing process
A company who manufactures and supplies products for education for the visually impaired had improved the quality of the paper and the process of manufacturing the paper to be used with tactile technology.
We identified as qualifying R&D activities where they had:
- Undertaken work with various grades of backing paper and various thickness of coating to achieve the correct quality of paper that prevented bobbling and curling
- Applied various temperatures and speeds to the machine to achieve the correct quality of paper
- Produced commercially competitive specialist paper that can be purchased by smaller institutions
- Developed an innovative heater that can be used with the specialist paper produced by the company to develop tactile diagrams for the visually impaired.
- Developed a bespoke heater with dual voltage for a Brazilian customer.
Improving the biomass systems for domestic and commercial use
A company that offers a complete range of reliable and high quality renewable energy product solutions supported by unrivalled technical knowledge, service and design capabilities.
We identified as qualifying R&D where they had:
- Undertaken work to improve the system by operating multiple log gasification boiler systems
- Undertaken work to improve the design process and operation of the system of linking the boiler via thermal storage tanks
- Tried to improve the operational efficiency by carrying out new ways of linking the system together on a live system for both domestic and commercial sized models
- Tried to seek new process and devise new design for the use of underground pipe to transport heating water around District Heating projects
- Different pipe products were taken and development carried out on heat loss performance to improve the design.
Dairy company producing speciality milk and associated dairy products
The company developed various products such as coconut milk, oat rice milk and almond milk with internal and external specialists using chemicals and materials. Research specialists were also used to ensure the product met UK health and safety guidelines.
We identified the following areas qualifying for research and development tax relief:
- Establish a process that protected the benefits of vitamins whilst treating the milk
- Enabling minerals to be added and ensuring the “taste of milk” was maintained
- Extending the shelf life of product