Should we consider making a claim?
If your technical personnel are undertaking activities where they are facing technical problems that do not have readily deducible solutions, either from their own knowledge or in the public domain and at the end of their project they have increased knowledge of overcoming these issues. Then there is a good chance they are undertaking eligible activity. What typically requires specialist assitance in R&D Tax claims is then to establish how much of the project they are working on is eligible. Underestimating the activity that qualifies is one of the biggest causes of under claiming R&D Tax relief. Assisting client's in establishing the true extent of eligible activities is one of R&D Tax UK Limited's key service provisions.
But we don't do what you would really call R&D, do we?
R&D that is eligible for UK Tax relief is based on a much wider definition than might traditionally be thought of as R&D. It can occur wherever there is a technical problem without a readily deducible solution, this can be product development related, process development, process improvement or even overcoming a re-occuring failure in a manufacturing process. The majority of engineering organisations face this to some degree, but many do not realise they could be reclaiming between 7.5% and 21% of their costs.
What if my tax accountant says we do not qualify?
Though many practices now appreciate the knowledge gap here and refer cases appropriately to a specialist, there are still many instances where such judgements have been made without appropriate input from a specialist R&D Tax team that contains industry experienced engineers.
If you are being advised that some or all of your activities do not qualify by someone without the technical knowledge to understand your product / process or the failure modes that may occur within it, then you are potentially missing out on a saving of between 7.5% and 21% of the qualifying costs incurred.
Will the benefit really be worth the effort?
Typically we can make an assesment of whether a claim is worth pursuing with a conference call involving one or more of your technical managers for 30 minutes.
If it appears there is a fruitful claim then utilising our services will minimise step two to between one and three hours of your technical managers time. If an example project requires representation to HMRC, then this will typically require a further one to three hours of just the leader for that project. The production of reports, presentations required for submission is carried out by R&D Tax UK, thus leaving your technical personnel free to work on core activities.
From a claim quantification perspective we can demonstrate a number of methods that have been succesfully used to efficiently produce claim costing calculations and documentation. This includes data mining and manipulation techniques that will efficiently produce an R&D Tax submission schedule from a data dump of cost records. Using the expertise of our personnel has been proven to provide a return of ten times the normal charge out rate of an organisation's personnel.
How can I assure that the benefit will outweigh the costs?
R&D Tax UK Limited is commited to providing leading advice at a cost effective price. If you wish to contact us for an initial discussion on potential eligibility this will be free of charge. If a viable claim is identified then a number of fee structures are available including engagement on contingent rates with payments structured to minimise impact on cash flow through the majority of fee only being paid as a percentage of the amount agreed by HMRC.
To discuss these points of any other matter on R&D Tax relief call us on 01962 713733 or 05602 587425 or use contact us link for email