R&D Tax Credits for Businesses
Many businesses believe that Research & Development tax claims are limited to brand new products or ideas and only available to certain industry sectors, but this is not always the case.
Companies that look to improve or develop a product or service or enhance an existing one and spend money doing so could be eligible for R&D tax relief
Since 2012 Ad Valorem’s dedicated team of tax credit experts have provided specialist R&D tax relief services to a variety of businesses ranging from start-ups through to large and complex corporate organisations.
Unlike most boutique providers, Ad Valorem has no minimum claim level and a offers a 100% success-based fee structure while providing the professionalism of a regulated ACCA practice. As an award-winning R&D specialist firm, Ad Valorem is perfectly placed to help you maximise your R&D tax credit claim.
What is R&D?
The R&D tax credits incentive is for companies that design, develop, or improve products, processes, techniques, formulas and software through science and technology. The credits are calculated based on the R&D eligible expenditure in the accounting period and act as rewards for companies that pursue innovation with increasing investment. R&D tax credits is an incentive created by the Government to encourage and reward businesses for innovations and design improvements. This reimbursement of innovation gives companies the opportunity to reinvest the spent money and further develop their business.
How do R&D Tax Credits work?
Companies that look to improve or develop a product or service or enhance an existing one and spend money doing so are eligible for R&D tax relief. If a business invests money while developing/ improving its product or service then the Government offers an opportunity to claim R&D tax relief and the company may receive a payment, either in cash or through corporation tax relief, which would in turn save the business money.
Is my business eligible for R&D Tax Relief?
Many businesses believe that R&D tax claims are limited to brand new products or ideas and are only available to certain industry sectors but this is not always the case.
Your business could be eligible to receive between 8.6p-21.5p for every £1 you spend on R&D eligible activities.
If you believe your business is investing in development or innovation, then in short you could be eligible to claim R&D tax credits. The spectrum of businesses that tend to claim for R&D tax relief is wide and although there are a few industries that claim more than most, we have seen wide-ranging products and services that have requested and successfully claimed R&D tax relief. The three main factors which determine if you would be eligible are; if your business is a limited company, if you are/have carried out research or developed a product and if you have spent money in doing so.
The R&D claims are not limited to only successful projects, you can also claim on unsuccessful projects as long as you have evidence of technical uncertainty. Some of the ‘buzzwords’ that can also indicate eligibility are if a project aims to make something: faster, less expensive, more efficient, more durable, more environmentally friendly and more controllable.
When is the best time to start a claim?
The best time to start is now! When claiming for R&D you are eligible to claim for up to two previous accounting periods and so there is a rolling two-year deadline for submission.
Start your claim here
Get in touch with us to see how we can help
The R&D Tax Credit Journey
Here’s a simple guide to your R&D tax credit journey
STEP 1 (within a week)
Book fact-find meeting
Ahead of this meeting you will be sent a short information pack explaining the purpose, setting the agenda and detailing any information you need for the meeting.
Undertake fact-find meeting
Sit back, relax and talk it all through with your Client Manager.
STEP 3 (within four weeks of Step 2)
Please bare with us while we collate all of the information gathered into your Draft Technical R&D Report and Draft R&D Expenditure Summary.
During this period we may request some additional information.
STEP 4 (within three days of Step 3)
Internal review and quality control
We pride ourselves on delivering the best service and reports possible. In order to achieve this we must ensure that all work meets our high standards.
STEP 5 (within one day of Step 4)
The Big Reveal! Your first look at your R&D report. Please review the Draft Technical R&D Report and Draft R&D Expenditure Calculations.
This is your report and if you want anything amended please let us know.
STEP 6 (within one week of Step 5)
We will make all the suggested adjustments and finalise the report.
STEP 7 (within one day of step 6) Submission
We will send the finalised report and expenditure summary to your accountant along with detailed filing instructions on how to submit the claim to HM Revenue & Customs.
Now we wait…
Now HM Revenue & Customs has the claim and will look to process it within 28 days.
They do experience periods of high volume and there may be delays in them processing claims. Rest assured, this is nothing to worry about and we will liaise with HM Revenue & Customs in these cases and keep you apprised of their current processing times.
The claim has been processed and accepted by HM Revenue & Customs. We will contact you with the good news and advise as to the total tax saving.
We will also invoice you at this point.
Count the days until your next claim!
Innovative Financial Collaboration
Ad Valorem are a family run accountancy practice who are perfectly placed to help you with every financial aspect of your business. We focus on providing businesses and individuals with the best technology available, to ensure clients are operating as efficiently as possible, whilst fully understanding their financial position.
Based in Milton Keynes, Ad Valorem are one of the regions leading firms of accountants, auditors, tax and business advisors. We pride ourselves on having a proactive approach to compliance and advisory services, focusing on people and human experience ensuring we continuously communicate and have conversations with our clients to fully understand their motivations and ambitions.Read More >