For eligible projects/activities, this is the money spent on salaries (including NIC, pension and bonuses), externally provided workers (EPW), sub-contractor, software/hardware, reimbursed expenditure (travel subsistence), utilities (electricity, water, gas and oil) and consumables used in the process, such as chemicals, materials, batteries and certain tools.
That may be the case, however in addition to being accountants, we have a specialist R&D tax team that have achieved £10m in benefits for our clients and a 100% success record to date. Speak to us to find out more.
It is possible for subcontracting companies to claim R&D Tax Relief and a company may claim the relief on their expenditure on subcontractors. In order to make a claim you need to be sure about your contractual situation, the work that subcontracted employees are contracted to do, who is bearing the cost, and the size of your business, as all of these can have an effect on the eligibility of expenditure on subcontracted work.
Under the SME schedule, up to 65% of payments to subcontractors can be claimed. The rules differ if the SME is connected to the subcontractor (e.g. if it is parent, part of the same group or they are under common control).
No, there is no requirement for the subcontractor to be in the UK. However, it is important that the subcontractor is engaged to perform a specific task.
Yes. The crucial thing is that companies have to be spending money, and the more they have spent on eligible activities, the greater the potential benefit. Loss-making companies are usually eligible to receive a cash repayment.
Yes, if you meet the criteria and are making a profit you can obtain a refund of corporation tax that you’ve already paid. If you are making a loss, you can receive a cash payment. However, sometimes companies prefer not to take the cash and take the future tax relief instead.
This depends on your current tax position. If the R&D costs qualify, you should expect up to 33.35% of those costs back for loss-making companies. The tax benefit for profitable companies is up to 26%.
Typically, around 3 – 6 weeks after we receive the information. However, a recent record was 4 days!
Your initial consultation is free of change. Our fees in any case are contingent on a successful outcome.
Yes – we have worked in partnership with many accountants over the years, without disturbing existing relationships. We always complement rather than complete. Contact us to find out how we can work together with your accountant to maximise eligibility and present a report accordingly.
R&D Tax Relief has provided a major boost to British business, but many are still unaware that they can claim the relief to help fund research and development, often incorrectly thinking that their on-going enhancement of existing products and services does not qualify because “it is just what we do”. Here, some of our clients explain how Beavis Morgan has assisted with their successful R&D Tax Relief claims.
Transport Services Business
Transport 2 is a market-leading provider of coach and minibus transport services. We have developed a number of innovative solutions allowing schools and parents to track both school vehicles and the pupils carried, and also for schools to obtain competitive pricing from pre-approved operators. The Beavis Morgan approach has resulted in tax refunds approaching £220K over two years, providing funds for reinvestment in the next stages of development.
Digital Marketing Agency
Feed Communications is a digital marketing agency. We use advanced analytical technologies to help our clients optimise their digital marketing strategy. We work with large global organisations and have to continually develop our approach to meet their demands. We have worked with Beavis Morgan for 3 years and the R&D tax benefits have exceeded £200.000. Their approach is completely painless - they tell us the financial data they need, we spend an hour or so together discussing advances we have made and the challenges overcome, and they do the rest.
We are a multi skilled software development company. Before we met Beavis Morgan, we had used a small firm of accountants who we thought were a good match for our size. They never raised the topic of R&D with us, and clearly weren't up to speed in this area. We make decent profits but having to put money aside for the corporation tax payment stifled our growth. Beavis Morgan’s approach to R&D Tax Relief has saved us nearly £100k over two years and reduced this year’s tax to nil.
Published 4 October 2017
(The following link directly to the Government website [open in a new tab/window])
R&D tax relief supports companies that work on innovative projects in science and technology.