Research & Development (R&D) tax relief is available to businesses in the UK across all sectors who are pushing the boundaries in their area, exploring ways to improve their production or manufacturing processes, undertaking software development projects or, as is currently very prevalent, adapting processes to support the COVID-19 efforts. It doesn’t matter if another company has achieved the same end goal, or that the project fails, is not completed, or makes a loss, you can still qualify; the key is that you are seeking to achieve an advance beyond what you are currently doing.
Technical innovation, creativity and problem solving are skills inherent in the day to day activities of many design, development and manufacturing companies. It’s the close correlation of these skillsets with the pre-requisites for a successful Research & Development claim that have led many businesses to take note of the opportunities for a substantial tax rebate from HMRC, as shown in the following case study:
“Advanced Plastic Technologies is one of the leading plastic product manufacturing UK companies providing key support to its customers by offering an array of plastic processing technologies and combining this with a breadth of plastic materials experience. Being at the cutting edge of all types of bespoke plastic fabrications enables a high level of innovation into its designs. The company has developed a range of Covid-19 protective screens and related products to help safeguard staff as they return to work.
“Beavis Morgan has helped us with highly successful R&D claims in areas where we previously didn’t realise we qualified for this support.”
Anything that is spent on researching or developing your current or future offerings may be liable for tax credits which means your business’ financial position could be vastly improved. Up to 25 per cent of your R&D expenditure can be claimed back under the system if your business is profitable. If you happen to be running at an operational loss for a given financial year, then up to 33 per cent is allowed under the scheme.
Get in touch to find out how you too can get money back for innovation.