Does Your Company Qualify for R&D Tax Credits?

Company Tax Credits?  Surely if there’s a tax credit to be claimed you’d know about it wouldn’t you?  Not necessarily.

The relief on Research and Development (R&D) has been considerably widened over the last decade.  With many companies not realising that they could be benefiting from a tax reduction or even a cash payment.

What are R&D Tax Credits?

R&D stands for Research and Development.  If your company is liable for corporation tax you may also qualify for R&D tax credits or R&D tax relief under the umbrella of research and development.

The Government wants companies to invest in research and development because innovation creates wealth which in turn grows the economy.  By introducing R&D tax credits the UK Government are aiming to incentivise companies to invest more of their business expenditure into the R&D field.

The scheme may change slightly each year but whether you’re a small-to-medium business enterprise (SME) able to claim R&D tax credits or tax relief, or a large company claiming Research and Development Expenditure Credit (RDEC), there are generous allowances to be had.

Who Qualifies for R&D Tax Credits?

You may think that the R&D stipulation is somewhat restrictive.  After all, how many research companies are there?  However, research and development isn’t limited to scientific discoveries or inventions.  If your organisation develops something new – a new process for example, or even a new service; if you develop a better way of doing something you already do or if your company needed to find a working solution to a problem the answer isn’t in the public domain, these are all areas where R&D tax credits could be awarded to your business.

All kinds of companies are actually undertaking R&D without even realising it.

Think You May Have an R&D Tax Claim?

If you are unsure whether you have a R&D tax credit claim there are specialists on hand to advise you.  The process for claiming R&D tax credits will require evidence and documentation.  At R&D Tax North West Ltd we are experts in the preparation and submission of R&D tax credit claims.

Rather than taking up the precious time of your employees in form filling why not first contact us for an assessment?  In order to investigate a potential claim, we use our previous experience to quickly establish whether your organisation has a realistic R&D tax credit claim.

You can view our case studies for examples of businesses we have successfully helped make an R&D tax credit claim.

After a brief discussion we will assess your situation, identify opportunities to make a claim and establish the anticipated level of benefit that would result.

We then prepare and submit the R&D Tax Credit claim on your behalf (under the relevant scheme) and liaise with you and HMRC throughout the duration of the process.

When an R&D Tax Credit Claim Is Identified

How long the claim will take and how much your company can expect to benefit financially will depend upon many factors.  Take a look at our FAQ page for more detailed information.

The big question is; can you afford not to investigate whether your company could be due R&D tax credit?  Don’t delay in finding out – take advantage of the tax allowances available now.

If you have any questions get in touch with R&D Tax North West Ltd on: 01827 338 118 or fill out the contact form.

Links:

R&D Tax Credit Case Studies

 

Claiming R&D Tax Credits as a Web Developer

In the web development industry where survival is tough and every pound is strategically spent, it’s more important than ever to know your tax entitlements for your business to advance.

Yet many web developers are failing to claim substantial amounts of research and tax credits each year, believing instead that they are not eligible to claim.

However, the ever-evolving digital age in which web developers operate frequently offer opportunities to claim R&D tax credits, and with good reason – because research and development into digital processes shouldn’t be stifled; it should be explored.

Mobile devices, applications, e-commerce processes, content management systems and unique client requests are pushing web developers to research and attempt new and innovative ways of working – all of which fall into the R&D tax bracket.

So the question is, can you as a web developer claim R&D tax credits?

Am I Eligible to Claim R&D Tax Credits as a Web Developer?

In order to claim R&D tax credits as a web developer, you must have attempted or succeeded in making an advance (or appreciable improvement) in science or technology.

For a web developer, this could include new software, data processing, algorithms, reducing system overheads, integrating legacy apps or even new processes behind existing developments. If you’re attempting to create a new system or process that is complex and takes a considerable amount of effort to achieve, then there’s a good chance you can claim R&D tax credits for this work.

And of course, why not claim – the purpose of R&D tax claims is to provide an incentive for companies to explore new advancements with technology and digital processes, not just for their own business, but to benefit the whole industry and attract interest from overseas investors into the UK economy.

An Example of a Web Developers R&D Tax Claim

To appreciate what is involved in claiming R&D tax, here is a summarised example of a genuine, successful claim, made by a web developer through R&D Tax North West Ltd:

Background: A request had been made to a web developer for a custom built e-Commerce system that had the ability for customers to design products both online and offline using a mobile device and with the same functionality on a standalone touch-screen kiosk. The client did not want a separate app for customers to download, but did require that any designs made should be saved and sent as a layered print ready PDF document.

Development: At the beginning of the development there existed no ‘off-the-shelf’ program that had the capabilities to provide a user-friendly design experience on a mobile device that had the ability to convert saved designs into a layered PDF. Therefore, a new eCommerce platform would need to be developed that could work with mobile devices, desktops and a standalone kiosk.

Troubleshooting: Extensive testing was required to support development of seamless image rescaling that required a bespoke scaling algorithm and the conversion of the saved design into a layered PDF; something that web browsers are unable to achieve.

Research was then conducted into developing the right code which could accurately identify, place and order layers of an image in an appropriate standard for a sublimation print process.

Further research and testing was needed to implement this on the standalone kiosk that experienced a variety of issues, depending on which internet browser was used. This required the development of a hybrid bespoke browser and modifications to the computer operating system.

Result: Performance monitoring and review of the new eCommerce system is being conducted for understanding of how to improve and enhance the user experience. Further research will be conducted on the effects of network behaviour, data transfer and upscaling algorithms for optimum image quality and speed.

As you can see by the web developer R&D tax claim, extensive research and testing was conducted for the implementation of an eCommerce system not yet available.

The original tax claim includes further details and an in-depth explanation of the tasks and research conducted at the time and expense of the business. The result was a successful claim for R&D tax credit relief through a corporation tax refund.

How to Claim R&D Tax Credits as a Web Developer

If you’ve had a similar experience researching, testing and attempting to improve processes or systems for web development within the past two years, you could qualify for R&D tax credits, even if you didn’t meet with complete success.

For a straightforward way to learn if any projects you have been involved in as a web developer are eligible for R&D tax credits, all you need to do is contact R&D Tax North West who hold a strong track record for supporting web developers to claim R&D tax credits.

To contact R&D Tax North West, simply call 01827 338118 or complete a brief contact form today.