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.
PMC Midlands Ltd
I was unaware how much of our work qualified as R&D and was pleasantly surprised at how worthwhile and easy the process was. I would highly recommend the scheme and Beavis Morgan to anyone in the construction sector”
John McAslan + Partners
“The Beavis Morgan R&D team has brought great knowledge of both our industry and the workings of the R&D tax regime. It’s this combination that has made the process both painless and highly remunerative for us."
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.
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.