We all know that Research and Development (R&D) is time consuming and expensive, so why aren’t more companies claiming back these costs?
Since 2000, under the R&D Tax Credit Scheme, a government initiative to boost innovation in the UK, any Limited or PLC company is entitled to claim back up to 27% of their R&D costs.
What’s the catch?
There isn't one.
If your company has spent money developing a new or existing product, service or process then you can apply. Despite all it being the largest tax benefit available to UK companies, only 10% of companies that are eligible actually submit a claim.
Still in the early stages where you aren’t seeing a profit yet?
With this government scheme in place, even if your company is loss making, if you can show that you have invested in a development project, you can claim up to 27% of that money by submitting an R&D Tax Credit claim to the HMRC.
Has your company already seen a profit?
The R&D Tax Credit Scheme still benefits you as well and as a profit making company you will be able to claim up to 21.5% of your expenses attributed to your R&D project(s).
Approximately 90% of companies that could be taking advantage of this scheme aren’t doing so and thereby are missing out on funds which could be invested back into further developments.
Whether your claim amounts to a couple thousand pounds or a couple of hundred thousand, it’s always worth checking your eligibility and filing a claim.
Taking the pain out of a claim
At Claim Capital, we handle all the practicalities of putting together a claim and leave you free to focus on your core business.
Step one is arranging a free eligibility consultation call with one of our R&D Tax Specialists.
Next, we’ll arrange a call to discuss your financials and understand your technical projects in further detail to put together a comprehensive report.
After 3 - 5 working days your R&D Tax Credit report will be finalised and a completed R&D Claim report will be submitted to your accountant to file with HMRC.
Following submission, we need to wait for HMRC to approve your claim which can take between 4 - 6 weeks.
The final step is receiving your tax benefit from HMRC and re-investing it into your future R&D projects!