Research & Development Tax Credits

Helping you obtain the correct amount of tax relief for your clients R & D expenditure

R&D Tax Credits are a tax incentive from the UK Government designed to encourage companies to invest in R&D. They can reduce your tax bill or you can claim payable cash credits as a proportion of your R&D expenditure.

Expenditure into Research and Development is commonplace in UK companies, but still relatively few take advantage of the generous Corporation Tax Relief available to them.

Research and Development tax credits are an incentive from the UK Government designed to encourage innovation and investment by reducing the tax bill or offering a payable cash credit (where there’s a loss) for the qualifying company. Research and Development relief is currently available at a rate of 230% of the qualifying revenue expenditure for those within the SME scheme, while the Large Company scheme affords relief at 130% of the cost. In addition to this, associated Capital Expenditure can immediately be relieved through Research and Development Allowances (RDAs) at 100% of the cost. We offer a specialist service that can help you and your clients, firstly to establish whether a claim is possible and then assisting with a smooth claims process.

RESEARCH AND DEVELOPMENT TAX CREDITS DOCUMENTS

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View or Download Help Sheet

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View or Download Qualifying Questionnaire

To give you an insight into the scope of claims available, here are just a few of the sectors where a claim may exist:

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Cardboard packaging manufacture

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Construction

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Food and drink production

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Pharmaceuticals/bioscience

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Recycling

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Software

Case Studies

Bioscientific Development

Elect were invited to review the work of specialists in the arena of medical research to determine whether the project being undertaken qualifies for R & D tax credits. After detailed discussions with the client we established an entitlement to make a claim under the SME scheme (the company has less than 500 employees, turnover less than €100m, balance sheet less than €86m). The company has designed, and is developing pioneering technologies that will resurrect anti-microbial therapies made ineffective by increasing microbial resistance. These solutions will impact one of the world’s most significant clinical problems by not only treating antibiotic resistant infections, but also by preventing them in susceptible patients. The technology will make existing antibiotics work effectively again, as well as maintaining the efficacy of newly developed antibiotics. It is applicable to all antibiotic classes, all known resistance mechanisms and all bacteria. The claim was formed largely from a proportion of staff costs, consumables and contractor costs provided the client with a significant tax credit enabling them to continue their amazing work.

Product Packaging

In this instance, Elect were asked to review the works being undertaken by the client company who specialise in finding solutions to product packaging problems. A desktop study gave us an understanding of the limitations of products currently available in the marketplace and the background to determine that the development work being undertaken was qualifying. Over the period of the claim this business was involved in numerous product developments for both nationally and internationally known businesses requiring unique packaging to fulfil needs in terms of, strength, resilience, size and shape. This involved the testing of a variety of materials for cost and aesthetic purposes as well as various stress tests to ensure efficacy in differing situations. Development costs formed from dedicated staff time and materials made up this significant uplifted claim for relief under the SME scheme for this client.

Road Safety Improvement

Here, Elect were invited to review the development of a product that enhances the amount of ground level illumination and visibility on darkened roads. This vision was to develop a ground level illuminator that incorporated a long beam of light (as well as other features) to provide greater road level illumination, visibility and therefore enhanced safety for drivers, instead of the regular lines of paint that only become visible when vehicle headlights illuminate them. Following extensive research and testing of illuminators over a period of 2 years the business has found significant success with a road stud incorporating this high intensity linear illumination on the road surface which can also react with conditions. As a consequence a patent application has been approved in the UK and International approval is pending. The business is also continuing it’s development activity in this area helped by the additional relief available to them under the SME scheme.