Research & Development
Offering high level of support bases on 2002 research and development tax credit regime is one of our major technical expertise. The research and development tax credit regime has continued with the advent of the newer patent box scheme. We are experts in obtaining large tax refunds for our many clients which can be small spin outs from Universities or subsidiaries of large international groups. We have always charged a reasonable fee rather than a percentage cut which is common place amongst our competitors and ensures our clients get more value for their money.
Our clients funding stream includes raising funds to continue their R&D efforts under the Seed Investment Enterprise scheme (SEIS) or the enterprise Investment scheme (EIS)
Our job is to make sure our clients are compliant so that their investors have the confidence to invest. Some clients are keen to ensure their expert staff members are motivated and wish to reward them with share options. We can help by ensuring this is done in a tax favourable way.
Additionally, others require an accountant’s letter so that their final grant claim is paid. We do this as efficiently as possible so that fees are kept to a minimum.
R&D Tax Credits
The UK Government recognises that encouraging innovation is a vital component in a strategy for improving the UK’s productivity, performance and competitiveness. As a result, the research and development (R&D) incentives for both small and medium size enterprises (SMEs) and large companies have been enhanced in recent years to encourage and reward greater innovation in the UK
The R&D revenue relief increases the amount a company can obtain tax relief on to more than the normal 100% revenue deduction. This relief is 230% for expenditure incurred by a SME on or after 1 April 2015 (previously 225%). Large companies are subject to a different regime not considered here.
Alternatively a SME may claim a payable R&D tax credit for an accounting period in which it has a surrenderable loss. For expenditure incurred on or after 1 April 2014 the amount of payable tax credit that a company is entitled to for an accounting period is 14.5% of the surrenderable loss for that period. For accounting periods ending on or after 1 April 2012 the R&D credit is no longer restricted to the PAYE/NIC liabilities of the company.
How we can help
Most of our clients make claims under this scheme. From helping clients identify their qualifying activities and expenditure, to developing a methodology for future claims and negotiating agreement with HMRC, our expert team ensure that our clients receive their maximum incentive which is robust to HMRC scrutiny.
Unlike most accountancy firms, we charge on a fee basis rather than a percentage of the refund received. This generally means our clients pay considerably less for our services.