R&D Tax is becoming a major way for UK business to receive a cash injection. It is a scheme to promote and reward the risk that UK companies take when investing in Research and Development. This government scheme is administered by HMRC and a simple form can be the key to unlocking thousands of pounds in cash for your business. At Harlands we have helped many UK businesses to claim their R&D tax allowance from the government to reinvest into their business. The average payout for our clients is around £35,000 so it can make a huge difference to a company. Some of the uses that our clients have put this cash injection to include-
- Employing more team members to boost their business
- Reinvesting in more R&D for the future
- Taking it out of the company to enjoy
The benefits are there for all to see. We help UK business to realise the potential of this scheme and then we deal with HMRC so you can get on with the everyday running of your business.
We have a 100% success rate with R&D tax claims. We are able to keep getting the claims through for our clients because we understand R&D tax. We have studied it and we have an expert team that deal with these cases day in, day out. We want to help you get the most from your R&D tax claim. Here is our guide to the most common mistakes when submitting an R&D tax claim –
Not maximising a claim
We see a lot of R&D tax claims and one thing that stands out time and time again is the fact that companies don’t claim for everything they are entitled to. We maximise a claim so that you get the full benefit from it. It is much better to do the work once and get everything that you are eligible for than to go back after finding out you missed something.
We have submitted claims for some of our clients where their accountant missed items from the initial claim. Common areas that are missed include-
- The materials and other costs used for products or procedures that might not have been a success
- The associated staffing costs such as pension contributions or employers NI costs
- Money spent on outside contractors for specific parts of the R&D process
Getting the most from your R&D tax claim means understanding all the areas that you can claim for.
Not going back to the last 2 years
Many of the people we see have multiple claims for R&D tax credits that we can submit at the same time. If you have been spending on R&D and haven’t claimed then we can go back to the previous 2 tax years to increase the amount you can be due.
The Average claim we submit is worth around £35k, so you can clearly see the benefit of not making this mistake. R&D is usually a long-term expenditure for a company so the fact is that one claim more often than not leads to more.
The government had recently backed R&D tax credits as a way to help stimulate the UK economy until at least 2021, so this will be around for some time to come. Make R&D an integral part of your business planning and you can benefit from the growth it brings as well as picking up the cash injection from HMRC to your business through that period of time too.
Not using the Advance Assurance guarantee
If you are a small business with an annual turnover of less than £2 million then you can take advantage of the Advance Assurance guarantee. It means that if you submit a valid claim this year, then your claims for the next 2 years are guaranteed to be approved without any further questions being asked. This is just one of the ways that HMRC is attempting to make tax easier for the small business.
Not using a professional
The long and the short of it is that R&D tax is quite a specialist area of tax and accountancy. We understand this so we have developed a dedicated team that have become experts in R&D tax. Even if you are happy with your current accountant, we can work alongside them to submit a claim that is maximised.
We offer a free no-obligation consultation to start the process so contact us today to see whether you have an eligible claim. The money can be in your bank account in as little as 4 to 6 weeks.