R&D Tax Services

R&D Tax benefits for SME’s are corporate tax incentives for businesses to claim a much needed cash rebate of your business development costs.
HMRC has an enhancement figure of 130% for R&D qualification costs.

Tax Rebate Solutions is a team of R&D tax experts with many years of experience to put together a comprehensive and diligent tax claim on your behalf to get a cash injection into the business under R&D tax legislation with hands on knowledge including manufacturing, engineering, technology and e-commerce sectors, complimented with a strong corporate tax background to guide you through complicated tax schemes, so that you can claim the maximum of what you are entitled for as a business from HMRC.

R&D For SME's

  • The UK government have increased R&D benefits since the beginning of the year 2000.
  • Two year back dated claim, cash or credit.
  • 130% uplift since April 2015, i.e. if you spend £100,000 on R&D activity and they are inline with R&D qualification costs then £100,000 becomes £230,000.
  • For the purpose of R&D tax compilation, depending on your tax situation, you can choose the following two options:

Only applicable for businesses that are profitable from the tax compilation viewpoint that are liable to corporation tax, you can choose a refund or saving, i.e. cash or credit.

Example:
SME Ltd.
Has the following results for the year ending 31 March 2015.

Trading Loss £200.000.
Qualifying R&D Expenditure £60.000.

The surrenderable loss is the lower of
£200.000 and
£60.000 x225% = £135.000.

The repayable Tax credit is £135.000 x 14.5% = £19.575.

Claim upto 33p for every £1 spent on qualifying costs.

With the experience and expertise that TRS has gained in processing R&D tax claims, we want to make it a straight forward process for yourself to make a successful claim. By following a step by step guide, it will give you an insight in how we put together a claim on your behalf.

R&D For SME's

THE PROCESS

  1. Confirmation call to see if you qualify for R&D tax credits, i.e are you a limited entity? Also, do you qualify for R&D projects? Prototypes? Do you make bespoke products? Have you spent any money on software development? or been involved in any form of innovation for R&D tax purposes?
  2. To establish your current financial tax position over your last two accounting periods (has the business been profitable for the last two years or non profitable?).

THE INPUT

Working with the key players in your business to start the process of claiming R&D tax benefits. This would be:

  • Project managers
  • Head of finance
  • IT managers
  • New product development director/manager
  • External accountant

To keep the process to a minimum time frame of what accurate information that we require. In some cases, we will need an on site audit at your business premises for our R&D tax director to fully understand any special or complicated projects or any new product developments so we can get a first hand insight for ourselves for R&D tax expenditure projects, products and services.

THE STRATEGY

To create a robust diligent transparent report highlighting all R&D tax criteria over your last two accounting periods. Amendment to your (CT600) with your new enhanced tax credit calculation in the expenditure section which will be sent to HMRC.

Our technical analysts will submit your report, a new CT600 figure via HMRC’s online portal, that the claim meets HMRC guidelines under R&D legislation codes. Any follow-ups or queries will be done on your behalf by us at no extra costs. As of yet we have never had to do this, It is imperative to get detailed and accurate reporting done first time to validate a successful claim.

GETTING YOUR BENEFIT

Depending on the claim, on average HMRC pays in a time scale of 6-8 weeks, some are quicker than others but on average our claim for our clients is usually about 8 weeks. HMRC pay directly into your bank account. If the business is profitable then your overall corporate tax bill will be reduced. You may have already paid your corporate tax bill then the business will receive a payment. If the business has made a loss for the tax period, then you can get a cash credit for you to exchange for surrendering the enhanced losses to HMRC. This is why TRS puts in place a workflow practice to make sure that every opportunity has been looked into in order to claim the maximum benefits for our clients, to making sure that everything is done professionally and accurately with the up most transparency where all parties are completely happy before we submit the report to HMRC.

If any of the following applies to you then you can submit a claim to HMRC:

  1. New products and processes or services.
  2. Changing or modifying existing product development processes and services. Example, do you make bespoke products? Have you improved your manufacturing capabilities to enhance your products over the last two years? Where there is a modifying improvement and advancement to what you have already done over the last two years.
  3. Have you been involved in any projects failed or successful? I.e. if a project failed due to technological challenges and uncertainties, then this is one of the purest forms of R&D that your business can claim for, example, salary costs, prototypes, time spent on projects, sub contracting costs which must be linked to product development.
  4. A project is a form of development, it takes time and money to achieve the desired results. The whole point of the R&D tax schemes is to stimulate small business goals along with the UK economy.
  5. HMRC is actually encouraging small businesses to claim R&D tax benefits. A strong SME sector in the UK is a key component to a healthy UK economy.
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