R&D tax relief – It’s a winner!
Research and Development (R&D) tax relief and tax credits are amongst the most under-claimed tax incentives currently available. Many people often believe that unless a scientist is employed by the company, then R&D is not taking place. This is not the case, if you are undertaking the development of new or appreciably improved products and/or processes, and there is a degree of technical risk, you could be entitled to claim significant amounts of cash.
R&D tax relief can be claimed whether your company is making a profit or a loss. Retrospective claims can also be made for the past two accounting periods, this can often result in a significant repayment of corporation tax, or if a company is loss making, a claim for R&D tax credits. It is therefore important to discover if a claim can be made as soon as possible, so as not to miss out on any time limits.
The process is perceived as challenging; our experienced team use tried and tested methods to submit the necessary paperwork in an HMRC friendly format. Our tailored approach combined with our expertise ensures seamless liaison with the tax authorities.
Our expert team will ensure the best advice is given relating to this niche area of opportunity. A short telephone conversation with one of our specialists will be able to definitively establish whether or not you could benefit from submitting a claim.
Capital allowances – Getting the lion’s share of the capital allowances kitty
Over half of all businesses will not have claimed their full capital allowances entitlement which could be worth hundreds of thousands of pounds. Our specialist team can assist with identifying and submitting capital allowances claims on your behalf.
When you buy, lease or improve a commercial property, HMRC allows you to deduct a proportion of qualifying expenditure from taxable profits and reduce the overall tax bill. Opportunities are available when expenditure is incurred on:
- the purchase of a second hand building
- a new build or extension
- historic expenditure – so long as the asset is still owned
- refurbishment works or fit-outs
The tax legislation allows claims for hundreds qualifying items such as heating, electrical systems, sanitary ware and fixtures to name a few. We can offer a thorough approach to capital allowances claims and use qualified surveyors to make a full assessment of the fixtures in the fabric of a building.
Typical properties that can benefit include:
- Doctors, dentist surgeries
- Care homes
- Hotels, pubs and restaurants
- Warehouses and industrial sites
- Holiday parks
We can quickly identify your entitlement and also provide a cash flow forecast of the benefits over many years without obligation. Our fees are flexible and usually contingency based.
Funding – Realise your true potential
As markets become increasingly competitive, a lack of funding can often be a major factor in inhibiting company growth. Funding can enable you to take ideas to the next level, allowing development and realisation of new products, processes and services. Our funding team can advise on the options available and find the right funding to meet your business requirements, below are just a few of the solutions we can assist with:
- R&D grants – R&D grants are awarded to micro, SME and larger companies. There are three elements that are needed to be eligible for grant funding: innovative ideas, a degree of technical risk and market potential.
- Capital grants – The £3.2bn Regional Growth Fund (RGF) supports eligible projects and programmes to create economic growth and sustainable employment. Over £800m has been awarded to small and medium sized businesses across the country since the programme began.
- Innovate UK collaborative R&D grants – Innovate UK (formerly The Technology Strategy Board) collaborative projects are designed to assist industrial and research communities to work together on R&D projects.
- Horizon2020 Dedicated SME Instrument (DSI) is the EU’s new programme for research and innovation. It will run from 2014 to 2020 and is the biggest EU Research and Innovation programme ever, with nearly €80 billion of funding available over seven years.
- Peer to business funding – Our peer to business funding partners offer an online marketplace where people and organisations lend directly to businesses for expansion and growth, asset purchase, working capital and cash flow finance and property development and investment.
The right type of funding will depend on your specific business needs. Our specialists are always happy to discuss your requirements and after a brief meeting or telephone conversation, we will be able to advise on the most appropriate funding available.
Patent Box – Make every component count
From time to time a change occurs that significantly shifts our reference points. The patent box moves patent rights from simply being an overhead to a potentially significant reducer of corporation tax liability. The reduced rate is 10% which will be phased in gradually over a five year period applying in full from 1 April 2017.
The 10% rate of corporation tax is applicable to products and services that incorporate patented inventions as long as the company owns or has an exclusive licence under the patent and meets certain development criteria.
Take advantage of this wide ranging opportunity.
If a company does not already hold a patent on its products and processes and they wish to benefit from a headline 10% corporation tax rate, we can seamlessly apply for a patent to the UK Intellectual Property Office before securing maximum patent box tax relief.
If you own intellectual property, you should consider whether the patent box makes it worth getting a patent to be able to claim the tax relief.
For more information and a non obligation conversation, please call us today on 01865 379272