• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
enquiries@advaloremgroup.uk
01908 219100
CLIENT LOGIN
Ad Valorem

Ad Valorem

Treating your business like ours

  • About
    • About Ad Valorem
    • Meet the team
    • Work for us
    • Testimonials
    • Specialisms
    • Taylor Roberts
  • Services
    • Cloud Accountancy
      • Cloud accounting packages
      • Book-keeping Packages
      • Getting the best from your cloud
    • Tax Services
      • Self Assessment
      • Corporation Tax
      • Share Schemes
      • Patent Box
      • HMRC enquiries and settlements
      • Capital Allowances
    • R&D Tax Credits
      • R&D Tax Credits for Business
      • R&D Tax Credits for Accountants
    • Finance & Banking
    • Wealth Management
  • News & Insights
  • Contact Us

R&D

June 25, 2020 by Sophie Wright Leave a Comment

Alex Black ACCA – Head of R&D

It has previously been requested and highlighted by firms and its members providing R&D Tax advice that there are a number of areas where they would appreciate clarity on the application of Professional Conduct in Relation to Taxation (PCRT) to their work. Members having any involvement with R&D Tax Credits have a responsibility to comply with the Fundamental Principles and the Standards for Tax Planning which are outlined in the PCRT and the Rulebook.

Tax advisors have a responsibility both to their clients, the professions reputation and the wider public interest. The PCRT helps to outline the standards and principles which can help to achieve this.

Many Accountants are already aware of the PCRT guidance. Many businesses however, are not as familiar with it and its fundamental principles. The 5 main principles that members of the professional body must adhere to are: integrity, objectivity, professional competence and professional behaviour.

Businesses and individuals rely on the advice and guidance from professionals and the above principles are in place to provide them against receiving bad advice. To receive advice there are 3 main areas to which the topical guidance covers:


Regulatory Expectations:

The guidance outlines those who are covered and the services. Any member of the PCRT bodies (ATT, AAT, ICAEW, ICAS, ACCA, STEP, CIOT) must follow and adhere to the PCRT guidance. This rule also applies to any advice which relates to a company’s R&D tax relief claim and must be following the PCRT guidance. Therefore any R&D tax advisor should be meeting their regulatory obligations such as GDPR compliance and anti-money laundering (AML).


Competence:

The PCRT includes that all advisors should attempt to do their absolute best to provide the best service to their clients and to get their clients claims right. Any member of the above governing bodies must be competent to provide such a specialist service (such as R&D) or they are not allowed to offer such service. The guidance highlights that R&D tax is a specialist service area and requires an in depth level of training and CPD.


Behaviour:

The principles of integrity, objectivity and professional behaviour govern the relationship between an adviser and their client. The guidance clearly outlines how advisers should behave and operate when dealing with their clients and their personal information and to not misrepresent themselves through personal brand marketing. The over arching theme here being responsible with data and transparent as an adviser in your abilities, strengths and weaknesses.


Since being introduced in 2000, R&D tax credits and the need for R&D tax advice has increased significantly as businesses continue to understand the requirements and benefits. This has opened doors for advisers to broaden their portfolio of abilities but has highlighted the need for specific knowledge on the R&D Government scheme. When taking over claims from other provides who don’t specialise in R&D tax credits, we’ve seen on a number of occasions where claims haven’t included all qualifying expenditure or understood the HMRC rules.

The PCRT has been put in place to help prevent advisers who are trying to reap the benefits themselves without actually producing a ‘good’ claim for their clients. Many advisers don’t understand the technical narrative and understanding needed to produce a successful claim and in the process of attempting to do so could prevent their clients from receiving their full funding amount.

Overall, the new PCRT guidance has helped to highlight to both advisors and clients how niche R&D actually is and how it requires a specialist team almost purposefully built who specialise solely in R&D to fully complete a success claim to its full potential.

Filed Under: Blog, News & Insights Tagged With: R&D

April 15, 2020 by Sophie Wright Leave a Comment

This week the Government have announced they are investing £20 million for ambitious companies creating new technologies to aid building resilience following the Coronavirus outbreak.

The intention behind the investment is to drive the UK forward and promote innovation post COVID-19, with the aim to help boost the countries resilience to the long-term impact of the outbreak and similar situations in the future.

As a result, grants of up to £50,000 will be available to businesses operating in the technology and research sectors who are focussed on developing new ways of working. The areas the Government are looking to focus on are improving resilience in industries that provide to the population such as delivery services, food manufacturing, retail/transport and supporting those having to stay at home during periods of self-isolation.

Examples of innovations may include:

  • Developing technologies that allow retailers to react and thrive when they experience increased consumer demand and ways to improve their national delivery.
  • More personable services for families to be able to contact and check in with elderly or vulnerable relatives. This would provide a benefit to both the family and those vulnerable as it provides peace of mind.
  • Create further tools to improve remote education, allowing teachers to teach with the correct resources adapted to remote learning.

So far the UK have seen many businesses adapt to the Coronavirus outbreak and to continue to support the population in anyway possible. This new investment will further develop the UK’s support plan in preparation for potential future events which may result in the same outcome as we have seen in the past few weeks.

Any development proposals will be reviewed as part of a competition launched by Innovate UK. All projects will begin by June 2020 and will aim to last up to 6 months allowing the products and services to be available to the public by the end of 2020.

If you believe that you could qualify for the grant please contact us to discuss your R&D project so we can fully assess the financial support and tax reliefs available.

 

enquiries@advaloremgroup.uk or 01908 219100.

Filed Under: Covid-19 Updates, News & Insights Tagged With: Covid-19, R&D

October 24, 2019 by George Bruce Leave a Comment

HMRC have recently released an R&D statistics report, outlining the recent figures for claims.

R&D has become a real asset to eligible companies since its introduction in 2001. Over 300,000 claims have been made with a value of around £30bn in total. The figures for this year are not yet fully complete however the figures stated in the article are indicative of a trend. See the link for the full report.

R&D Tax Credits have had a majorly positive influence on technical innovations; especially so since 2012 when the minimum investment cap of £10,000 was removed. This is evident in our region through the sheer number of claims made in London, the South-East and the East of England who accounted for 61% of claims made in the year 2017/2018. 41% of claims made in this year were also made by companies that are under ten years old.

We believe that the impressive influence of SME’s within the statistic for R&D claims is due to the increases in the SME R&D expenditure rate from 125% to 130% in 2015-16.

The number of first-time applicants has risen by 15% following the increase in expenditure rates. This is due to the efforts made to increase the incentive to make a claim and further awareness of the scheme. Despite this, the rise in claims does not necessarily correlate to increased value. For example, 9000 claims made in the year 2017/2018 equated to £20 million in costs, whereas the potential for this band could have reached £41 million (based on a claim worth no more than £5000). Although it is tangible to argue that not all claims would be worth £5000, it is reasonable to say that this difference of £21 million could be reduced with a stronger supporting document and help from a specialist R&D advisor.

Considering the areas in which we are based, and the proportion of claims made in our region, we would like to stress the importance of having a strong technical document to maximise your claiming potential. No claim is too small for us because we believe that Research and Development is essential for progression in whatever sector your business associates with and we pride ourselves on the relationships we have built and continue to build with other small businesses like ourselves.

These figures show that now is the best time to claim R&D because the government are rewarding innovation generously for legitimate claims in order to meet their expenditure targets of 2.7%. If you have been thinking about conducting a Research and Development programme or are currently doing so within your business feel free to seek professional assistance with us. See the following link to take you to our R&D website.

If you have any questions, call us on 01908 219100 or email us at: enquiries@advaloremgroup.uk

Filed Under: News & Insights, Uncategorized Tagged With: R&D

April 9, 2019 by Tania Toriello Leave a Comment

R&D (Research & Development) is a tax relief scheme which was introduced by the Government in 2000 to help and reward innovative businesses thus allowing them to progress.

What is R&D?

R&D takes all allowable expenditure incurred during the R&D project and allows you to gross it up by 130% meaning you can effectively deduct 230% of relevant costs from your profits. This equates to more than double of the allowable expenditure incurred.

Qualifying expenditure includes raw materials, staff costs, subcontractor costs and apportionments of overheads that are relevant to the R&D project. Loss making companies also benefit as they can opt for a cash payment of 14.5% of the losses made which increased from 11% as of 1st April 2014.

The R&D claim is submitted with a written report outlining why the project(s) undertaken qualify for R&D and backing schedules with details of costs incurred.

How far back can you claim R&D tax relief?

You have two years from the end of your accounting period to submit an R&D tax credit claim for any qualifying expenditure that you’ve identified during that period. This is because R&D tax credits are a Corporation Tax relief and the deadline for amending your Corporation Tax return is typically 24 months after the end of your accounting period.

Who qualifies for R&D?

The main requirement for a successful R&D claim is that your company is undertaking work which seeks to achieve an advance in science or technology.

The activities that directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are also eligible for R&D relief.

The common misconception is that the R&D tax relief only applies to those companies working in a scientific sector. In actual fact any sector could qualify for R&D relief if they can prove the project lead to an improvement in that field.

Here are some examples:

  • Food & drink
  • Pharmaceuticals
  • Electronics and Electricals
  • Engineering
  • Foundries
  • Software & IT
  • Manufacturing
  • Chemicals & Glues
  • Waste Recycling Plants
  • Video Games Development

If you think your company could be eligible for R&D tax relief, there are a number of things that we can help you do in order to maximise your R&D claim.

These include:

  • Collecting information on what R&D projects you have done or will be doing so that we can advise whether you qualify for R&D relief.
  • Establish what costs were incurred during the R&D projects and ensure you have the evidence for these in the event that HMRC request further information.

If you would like to speak to us regarding R&D tax reliefs and whether you would be eligible, please contact us using the details below:

01908 219100

enquiries@advaloremgroup.uk

Filed Under: News & Insights, R&D, SME Business Tagged With: R&D

October 9, 2018 by Tania Toriello Leave a Comment

If you’re wondering whether your business is eligible for an R&D tax claim, then take one step further and find out…

Our dedicated R&D Tax Team have over five years of experience in providing professional and exceptional Tax Relief services to many clients and accountancy practices. Our consultants have a superb working relationship with the R&D offices within HMRC and they will adequately agree and submit the quantum of the claim with HMRC.  We work on a contingent basis, so there is absolutely no financial risk to you and offer no minimum claim level, complete transparency and 100% success based fee structure.

Click here for more information.

So, what are R&D Tax Credits?

R&D Tax Credits are a tax break situated by the UK Government for limited companies paying corporation tax. The R&D reliefs help a range of businesses that work on unconventional projects in sectors such as Science and Technology. For small to medium enterprises (SME’s) the R&D relief enables companies to take off an extra 130% of their qualifying costs from their annual profit, as well as the standard 100% deduction, giving you an overall total of 230% deduction. The costs that can be claimed include consumable items, staff costs, subcontractor costs and other overheads that are applicable to the R&D project. On the other hand, if you’re a loss making SME, you can still claim 14.5% cash credit into your bank and if your project was unsuccessful, there is still a possibility of making a claim on the losses made.

Are you eligible for R&D Tax Relief?

Most companies think that R&D tax claims are only limited to specific sectors, original ideas and completely new products, but that is not always true. The principle requirement for a successful R&D claim is if your business is undertaking work which directly makes a boost in human knowledge. If your business is taking a chance by enhancing, innovating or developing a process, service or product, then there is a high possibility of your business qualifying for R&D tax credits. Common sectors like Science and Technology are known to be  more beneficial in getting a tax credit, but Ad Valorem have proven to have successful claims in the following sectors:

  • Manufacturing
  • Energy & Renewables
  • Software
  • Food & Drink
  • Mechanical & Automotive Engineering
  • Electronics
  • Robotics
  • Digital Media
  • Health & Safety
  • Animation

Statistics show that the R&D Tax Relief Scheme has been existing for over 15 years and almost £2bn per year is currently being claimed. Ordinarily, SME’s are claiming £46,000 each per annum.

Click here to find out more information.

How do I claim?

Our tax consultants will fill in all the necessary paperwork, make the claim through your company’s tax return and then submit an R&D tax claim report to HMRC for assessment.

Usually, the process can take as little as four weeks from initial meeting to receipt of confirmation from HMRC. There is also no minimum claim level and no requirement for a multi-year tie-in agreement.

Therefore, if you believe that your company may be eligible for R&D tax relief, then please let us know.

Contact:

Duncan Bruce – Sales & Marketing Director

duncan@advaloremgroup.uk

01908 219114

Filed Under: Innovation, News & Insights, SME Business, Staff - Tax Team, Tax Tagged With: R&D

Primary Sidebar

Recent Posts

  • THE NEW VAT RULES FOR CONSTRUCTION SECTOR START ON 1 MARCH 2021
  • Brexit Update
  • How COVID business relief could affect your R&D claim
  • Brexit trade agreement
  • Exporting – Getting an EORI number

Recent Comments

    Archives

    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • October 2019
    • June 2019
    • April 2019
    • November 2018
    • October 2018
    • September 2018

    Categories

    • Blog
    • BREXIT
    • Cloud Accounting
    • Covid-19 Updates
    • Innovation
    • My Mate Says
    • News & Insights
    • R&D
    • SME Business
    • Staff – Tax Team
    • Tax
    • Uncategorized
    • Xero

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    hello@advaloremgroup.co.uk | 01908 219100

    Strategy

    We help creative entrepreneurs build their digital business by focusing on three key elements of a successful online platform.

    Learn more about strategy.

    Footer

    2 Manor Farm Court, Old Wolverton Road,
    Wolverton, Milton Keynes MK12 5NN
    01908 219100
    enquiries@advaloremgroup.uk
    • About
      • About Ad Valorem
      • Meet the team
      • Work for us
      • Testimonials
      • Specialisms
      • Taylor Roberts
    • Services
      • Cloud Accountancy
      • Tax Services
      • R&D Tax Credits
      • Finance & Banking
      • Wealth Management
    • News & Insights
      • News & Insights
      • Contact Us
      • Sitemap

    Ad Valorem Group © 2021

    • Privacy & Cookies Policy
    This website uses cookies to improve your experience. Cookie settingsACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled

    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

    Non-necessary

    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.