With the average claim said to be around £40,000, can you afford to overlook this?
In this article, our experienced R&D tax advisor Paul Woodward, debunks some of the common misconceptions that are holding companies back from making a claim.
Myth 1: ‘Making a claim is complicated and takes time’.
Paul says: A typical R&D claim can be completed from start to finish in a matter of months and we handle everything for you as part of our fixed fee service.
Myth 2: ‘I’m not sure if we qualify’.
Paul says: Many activities qualify – even non-technical ones. Almost every company carries out some form of R&D, whether offering bespoke or creative solutions, building cloud-based platforms, or introducing new, innovative solutions or processes. We find eligible companies in a wide range of industries, including engineering, business services, retail and communications, amongst many others.
Myth 3: ‘I can’t claim a tax credit if I am making a loss’.
Paul says: Many companies don’t realise that losses can be turned into cash. Plus, in all cases, if this is your first claim, you can go back 2 financial years, which could boost your overall claim.
Myth 4: ‘Claims have to be large to be worth it’.
Paul says: It depends on what you class as large and whether additional funds, usually in the thousands, will help your business. Plus, HMRC have now removed the minimum claim limit. When we calculate all the potential qualifying costs such as staff costs (wages, pensions and training), materials, utilities (electricity and heating), outsourced research and testing or software purchased, your claim could soon build up.
R&D tax claim service
Our award-winning team carry out many R&D Tax Claims across various industry sectors and have secured clients more than £4 million worth of tax credits to date.
Contact us to discuss making an R&D tax claim, or visit our R&D Tax Credits page to find out more about our service.
With more than 20 years in tax, Paul provides tax compliance and advisory services to clients, and specialises in R&D and capital allowance claims.