Beavis Morgan R&D Tax Relief
Rewarding innovation | You can claim tax relief of up to 33% on your qualifying research and developments costs
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R&D Tax Relief – fast facts
Innovation

A tax relief scheme to aimed at developing scientific and technological innovation in the UK

Find out how much you could receive from HMRC

Up to 33%

Can give you tax relief of up to 33% on your qualifying R&D cost

Find out how much you are entitled to

HMRC

The scheme was introduced by the UK government in 2000 to encourage innovation

What are you due?

Loss making?

Companies making a loss may be able to exchange their losses for a payable tax relief

How much are you missing out on?

Fast facts about Beavis Morgan’s R&D Tax Relief

100%

SUCCESS
RATE

£millions

IDENTIFIED R&D SPEND

£90,000

OUR AVERAGE CLAIM

360°

SERVICE
OFFERING

100%

SUCCESS RATE

£millions

IDENTIFIED R&D SPEND

£90,000

OUR AVERAGE CLAIM

360°

SERVICE OFFERING

WHAT IS R&D TAX RELIEF

You innovate and the government rewards your efforts

It is a tax relief scheme to aimed at developing scientific and technological innovation in the UK. It was introduced in 2000.

You can get relief of up to 33% on your qualifying R&D costs, and loss making companies may be able to exchange their losses for a payable tax credit.

R&D Tax Relief

RECENT PROJECTS

Summer 2019 update

ROBOTIC PROCESS AUTOMATION £80,000
ARCHITECTURAL DESIGN £107,000
FIRE PREVENTION SECURITY £75,000
DIGITAL STRATEGY CONSULTING £67,000
LIGHTING COMPONENTS £22,000
CLOUD ANALYTICS £114,000
DIGITAL TV PLATFORM £76,000
MOTORSPORT ENGINEERING £50,000
ONLINE VOTING PLATFORM £33,000

Key Points

  • Up to 33% of eligible expenditure is repayable
  • Repayment in 3 – 6 weeks
  • Fees are contingent on success
  • Beavis Morgan’s proven methodology is hassle-free

Criteria

  • Using technology to develop new or improved products, processes, services or systems
  • Problem solving and finding bespoke solutions
  • Applies to profitable or loss-making companies
  • Two year time limit

Do you qualify?

THREE CHECKS TO SEE IF YOU QUALIFY FOR R&D TAX RELIEF

1.

ANY LIMITED COMPANY

You must be a ‘going concern’

2.

DEVELOPING SOMETHING
NEW & CHALLENGING

  • Products
  • Processes
  • Services
  • Systems

3.

CAN CLAIM A TAX BREAK
FOR EXPENDITURE ON

  • Own staff
  • Subcontractors
  • IT and other costs

…even if you are making a loss

Are you Eligible?

WHICH SORT OF PROJECT CAN YOU CLAIM FOR ?

Processes

Products

Services

Systems

MOST COMPANIES WITH UNDER 500 EMPLOYEES CLAIM UNDER THE SME SCHEME

There are separate rules for larger companies

  • Turnover exceeding €100 million
  • Balance sheet total of €86 million or less
  • Have already received certain types of grant

Accommodation & Food

This sector does not traditionally have a large number of claims. There are however missed opportunities where more activities should be classed as research and development, even though businesses don’t realise it. 165 accommodation and food R&D claims were made in 2016-17, totalling £5 million. An example of R&D qualifying activities could be a company in the food sector which conducts experiments to produce a new bread loaf range.

Admin & Support Services

This area covers a broad range of companies which collectively made 2,245 claims totalling £740 million in 2016-17. Examples of business activities in this sector include the development of software which allows for collaborative working, the digitalisation of meeting booking procedures, or the development of online platforms to facilitate HR functions.

Construction

An increasing number of companies in this sector undertake R&D to exceed the traditional methods in terms of life expectancy of buildings, durability or robustness. 1,365 claims were made in total in the construction sector in 2016-17 totalling £80 million. An example of an R&D qualifying activity in the build environment would be a company which conducts experiments to iron out technical problems with a block of its new enviro toilet. Or the development of a new or improved online snagging system which captures defects and enables teams to track activities, streamlining the construction and handover phase.

Digital Marketing

In today’s technological world, innovations are crucial in remaining competitive and improving our how we work. With the emergence of digital media, traditional marketing has become less relevant, and innovative projects have become more apparent, leading to an increase in R&D activities in this sector.

Information & Communication

This sector remains very R&D intensive, with 24 per cent of all R&D claims coming from ICT. In total 10,240 claims were made in 2016-17, reaching £685 million. There are a number of opportunities for R&D tax relief within this sector, for example the development of online communications tools which use AI or machine learning, or the use of new and alternative forms of technology to enable wireless communication.

Manufacturing

28 percent of all R&D claims were made by the manufacturing sector which remains one of the most intensive sectors for R&D.  In total, 10,115 claims were made to HMRC in 2016-17, totalling over £990 million. An example of supporting R&D activities in this sector includes a company which designs and builds a new method for producing titanium and experimentally tests the new component; or one which finds methods of making their manufacturing process more environmentally sustainable

Professional, Scientific & Technical

There was a concentration in the number of claims in this sector accounting for 23 per cent of the total amount of R&D claims made in 2016-17. 7,690 claims were made to HMRC totalling £820 million. An example of a core R&D activity in this area would a biotechnology firm experimentally developing a new biodegradable coronary stent. The activity does not have to be a success for R&D Tax Relief to be claimed.

Real Estate

The DTI Guidelines (2004) make clear that, when to achieve a design objective, a scientific or technological uncertainty within a particular project needs to be resolved for the activity to qualify as R&D. There were however just 150 claims made in 2016-17 in the real estate sector, amounting to £5 million in total. Examples of R&D in this sector include designing a ”green” building; or testing a new, cheaper building material that has come on the market.

Wholesale & Retail

This sector is within the top 5 for both the number and value of SME claims made. The total number of claims in 2016-17 was 4,210, reaching £185 million. R&D activities are not limited to client-facing projects. Companies in this sector may have automated their business operations to, for example, manage stock levels or streamline the delivery process. Such activities could potentially qualify for R&D Tax Relief.

The Beavis Morgan Approach

OUR R&D CLAIMS PROCESS

  • Our R&D team includes engineers and corporate tax specialists
  • Our accounting and corporate tax teams advise on accounting policies and tax outcomes
  • A full service from initial meeting to refund of cash