Investments in innovation by UK companies attract tax credit rates that are equivalent to 24.7p for every pound of expenditure deemed as qualifying. In other words a business that develops new products, or services, or one that improves upon existing processes or services can claim R&D tax credits.
We have a dedicated team working on R&D Tax Credits & R&D Tax Relief for our valuable clients. The services we extend to clients are throughout the project lifecycle, and includes resources with sound technical knowledge required to better understand the technicalities of research and development.
Our services include:
- Preparation of R&D claims
- Assistance in responding and negotiating with HMRC in post-claim processes
- Relief advisory services at project inception stage for maximizing claims
- Rendering support through Advanced Assurance process
Costs that can be offset through R&D claims
Certain types of expenses qualify as R&D expenditure, which can then be used for raising R&D claims with the HMRC. Some of the expenses include:
- Staff salaries
- Employer’s NIC
- Pension contributions
- Subcontractor and freelancer fee
- Materials, consumables used for the purpose of R&D
- Software related to R&D activities
Companies looking at R&D Tax Credits need to be aware that the rules can be complex to fully comprehend. Our teams work with clients to comprehensively carry out an assessment about qualifying conditions and the extent of relief that can be claimed.
As part of our services we help clients understand the expectations of HMRC when a claim is made, thereby helping companies get their facts straight right at the beginning of the process. Various interpretations will exist when it comes to understanding what constitutes R&D, and what expenses can be regarded as necessary for the R&D.
At Target Accounting, the special R&D Tax Credit Team comprises members with the right kind of technical exposure, who will be better poised to appreciate the nuances of R&D. Resultantly, your concepts will be understood clearly, which helps the team to assess the project on its exact merits, from the perspective of the HMRC.
A successful R&D Tax Credit claim needs to carefully list out expenses that are accepted as part of the R&D process. It is a fact that the R&D process results in expenses on different fronts. However, not all the expenses can be claimed despite being actual expenses. Only certain expenses qualify for the credit and at Target Accounting we help clients draw up claims on the basis of the qualifying expenses and the view of the HMRC towards expenses and R&D projects.
Many clients often forget sight of the fact that the HMRC may impose penalties if it is deemed that the claim was raised without due diligence or attempts to exercise reasonable care. This is where Target Accounting has helped many clients in the past, by ensuring that the stringent conditions spelt out by the HMRC are met, by relying on a checklist that covers all mandatory and expected requirements.