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SHENCOH

Nationwide R&D Tax Credits Specialists

R&D Tax Credits

R&D Tax Credits

R&D Tax Credits

Research and Development (R&D) tax credits are a valuable government tax incentive. R&D tax credits is not a scheme, it is a tax law that HMRC introduced in April 2000, designed to encourage and reward UK limited companies for investing in innovation.

R&D tax credits rates are the equivalent of up to 33p for every £1 spent on qualifying expenditure.

Companies that invest money into developing new products, services, processes or enhancing existing ones, are eligible for a cash payment or reduction of corporation tax, or increased taxable losses.

tax Calculator

R&D Tax Credits Qualification

The common misconception around the R&D tax credits, leads to a high number of companies not claiming, even if they are eligible. To simplify, as a company you must be able to demonstrate to HMRC that the product, process or service you’re claiming for is innovative and an appreciable improvement to what is currently available in the market.

According to HMRC “Research and Development takes place when a project seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty”. Reassuringly, if R&D is deemed to have taken place within a company, even if the project was not successful, its qualifying as the progress to seek the result, has taken place.

How R&D Tax Credits Work?

If your company is eligible, you can claim R&D tax relief back for the last two completed financial years. For example, if your financial year end is on the 31st December 2017, you can claim back R&D tax credits for the years ending 31st December 2015 and 31st December 2016.

The tax credit is calculated based on your qualifying R&D spend. Qualifying expenditure is identified and enhanced through the relevant rate, as seen below, to produce ‘your enhanced expenditure’. This will give your company a cash credit if you were loss-making, a corporation tax reduction if you were profitable, or based on the amount a combination of the two.

How R&D Tax Credits are calculated?

HMRC tax credits benefits companies exponentially, the SME scheme has a rate of R&D expenditure tax relief as high as 230%, compared to the Large Company Scheme with a rate of 130%. Through these schemes you can potentially improve your company’s financial strength, save high amounts on your tax bill or reinvest into R&D. See Calculator

The common misconception around the R&D tax credits, leads to a high number of companies not claiming, even if they are eligible.

To simplify, as a company you must be able to demonstrate to HMRC that the product, process or service you’re claiming for is innovative and an appreciable improvement to what is currently available in the market.

Partners & Introducers

With competition and companies contacting your clients, can you afford not to offer a comprehensive R&D Tax service?

We are currently in close strategic relationships with many of the UK’s leading accountancy firms and financial advisers. We are flexible and able to complement the gaps within your practice offering. Through our partnership we will maximise your clients’ R&D tax benefits. As awareness of R&D tax credits has expanded in recent years, with the help of companies like ourselves, it is not uncommon to find that there are significant misunderstandings around what qualifies as R&D expenditure. We can provide information on how to identify qualifying expenditure, however we typically find the simplest method is a telephone call or a meeting with your client to assess potential qualifying activity. Our comprehensive approach ensures that we can work with you and your clients to identify all elements of expenditure, which could potentially qualify for relief, therefore ensuring every claim is maximised.

Client satisfaction is our primary concern, we tailored our unique and effective client journey to ensure that the client receives the maximised claim, while taking minimal time away from their business. By carrying out full due diligence prior to using our report, we can guarantee a positive outcome for all parties involved. We have a dedicated in-house support team to assist in all partner and client requirements. Every client has a dedicated Case Manager and Research Analysts specialised in Research & Development legislation, to deliver specialist assistance when required. We invested heavily into a bespoke customer relationship manager (CRM) software to enable us to provide a high quality, seamless service to our clients and partners. With this software we can provide partners with a dedicated online hub enabling them to monitor their clients’ progress remotely and in real time.

Some of our accountancy partners look for us to provide a turnkey solution, by handling the entire R&D claim process following an introduction, while others look to take a more active role, by supplying us with their clients’ financial data and analysis. Whichever way you would prefer the relationship to work, we’re on hand as your trusted research and development tax specialists, enabling you to ensure that all of your clients are able to benefit from HMRC incentives available to qualifying businesses.

To become a partner, fill in the form here.

What is the financial position of your company

Profit-making

What is your estimated spend on R&D per year?

  • We estimate you could receive up to
    £13,000
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £65,000
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £130,000
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £260,000
    as a tax refund or reduced tax liability.

Loss-making

What is your estimated spend on R&D per year?

  • We estimate you could receive up to
    £16,675
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £83,375
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £166,750
    as a tax refund or reduced tax liability.

  • We estimate you could receive up to
    £333,500
    as a tax refund or reduced tax liability.

CONTACT

Salford Innovation Forum
51 Fredrick Road
Salford
M6 6FP

(0161) 743 3656

info@shencoh.co.uk

BUSINESS HOURS

Monday - Thursday 9am to 6pm

Friday 9am to 2:30pm

Saturday - Sunday Closed

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