Rewarding companies who consistently improve and develop
R & D Tax Credits
What are R & D Tax Credits?
Research & Development (R&D) tax credits are a government tax incentive set up to give innovative companies money back for any costs they have incurred in this area of their business.
Essentially, they are the Government’s way of rewarding businesses that are developing new, or appreciably improving existing, products, processes, systems and materials — and thereby increasing the country’s wealth creation capacity.
HM Revenue & Customs states the following: “Your company or organisation can only claim for R&D Relief if an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.”
R&D Tax Credits apply to businesses that are liable for Corporation Tax. They can help to reduce a corporation tax bill or can be claimed as a cash sum paid back to a company by HM Revenue & Customs, due to an overpayment of tax.
Types of qualifying R&D expenditure are typically staff costs, software, utility bills, and any subcontracted work and materials. These R&D costs can be accelerated up to 230%.
We work with companies of all sizes and from every sector to raise their awareness of this area of taxation — and help them claim back the tax relief they are due for their R&D activity.
The complexity of R&D tax credits, coupled with constantly changing legislation and case law, mean that most companies undertaking R&D work are not making claims.
The majority of UK firms undertaking R&D are also unaware that R&D tax claims are restricted: claims can only go back two open tax years.
Many business owners are either unaware of the potential benefits of R&D tax credits or mistakenly think they are difficult to qualify for, they also underestimate the potential benefits or simply don’t think the scheme will apply to their business. These assumptions are often incorrect and this is where we can provide R&D tax help, with our proven 100% track record of successfully reclaiming tax for companies across almost all industry sectors.
Can I get R&D Tax Credits? Well if you can answer yes to these questions then YES!
- Do you consistently improve your range of products or services?
- Do to get involved with design or remedial work?
- Do you improve or develop new processes?
- Have you developed a new product?
If your company is making a loss, then no problem you Can still claim.
Don’t lose your entitlement
PRODDIO’s specialist team are ready to claim what you are entitled too. It’s so frustrating if a company has missed claims in the past. One SME, employing just 6 people, lost an estimated £200k because an accountant advised them wrongly. The MD told us, “From the very beginning, we have developed products, its part of what we do. That money would have helped us.” They’ve now claimed for the past two years, but are left wondering ‘what if?’ about the lapsed years.
A long term benefit
The government wants to reward risk takers and support companies who innovate and improve.
The R&D Tax Credit scheme is there to ensure ‘U.K P.L.C’ stays competitive. Paying less Corporation Tax means you can fund future investment. There are billions of pounds available in this scheme and it is guaranteed until 2032. It offers stability, security and the chance of growth for those taking risks to innovate.
Don’t make a timid claim
PRODDIO are happy to perform a quick health check on previous claims to advise on improvements to your current claiming approach and system. This is normally a half day activity and free if you move to PRODDIO.
The challenge is to ensure you’re being aggressive enough in what you submit. PRODDIO often find we can increase on a company’s claim by 40% plus