If your business comes up with bright ideas that make a difference to science and technology, your research and development (R&D) could bring you valuable tax benefits. At Milsted Langdon in Bath, Bristol, London, Taunton and Yeovil, we can help you maximise those benefits.
Our specialists have recovered more than £1.5 million in R&D tax credits for our clients since the scheme was introduced and we have an enviable 100 per cent record of success, with not one of our claims having been rejected by HM Revenue & Customs (HMRC).
What is R&D tax relief?
The R&D tax relief, or tax credits, regime was introduced in 2000 and is available to any company developing new processes or products that advance science or technology, even in a modest way, by resolving an area of uncertainty.
R&D claims depend on the size of the company, with slightly different regimes for large and small and medium-sized enterprises (SMEs), its tax rate and activities that are eligible, such as staff costs, software and raw materials used during the R&D.
We can also advise on Above the Line (ATL) tax credits, which have been introduced from April 2013 and are likely to be more appropriate for some clients, particularly larger businesses with trading losses.
Why claim R&D tax relief?
Many companies that potentially qualify for R&D tax benefits often view the rules as too complex or feel they don’t have the resources to make a claim. Others leave it too late, as companies only have two years from the end of their accounting period to make a claim.
But the financial benefits could have a significant impact on a company’s corporation tax position. Since April 2012, SMEs have been able to claim R&D relief of 225 per cent of qualifying expenditure, with no minimum spend, allowing them to claim £225,000 for every £100,000 of qualifying R&D costs.
If they are loss-making, they can claim a tax credit, which can be worth as much as 24.75p for each pound of R&D expenditure and bring an immediate cash flow advantage.
Milsted Langdon’s specialists in Taunton, Bristol, London, Yeovil and Bath can help companies of all sizes to make the most of the R&D regime. We are able to offer either a fixed or success based fee structure, ensuring that you have absolute certainty as to likely costs before we undertaken any work.
Our R&D tax relief services
By working with our R&D experts, we’ll guide you through the R&D regime, prepare your claim to help give you the greatest chance of success and liaise with HM Revenue & Customs on your behalf.
We can also advise you on issues like improving record keeping, so that you can better track all future activities involved in the R&D process, and the costs, so that all eligible expenditure is claimed for.
Because we make sure we understand our clients’ businesses, we don’t look at your R&D in isolation. We will build your R&D into your business planning so that you can use tax credit benefits as part of an ongoing strategy to grow your business and keep moving forward.
Other related areas such as Patent Box planning are often of importance to clients undertaking R&D work, and we would be delighted to discuss how you can best use the regime to your advantage.