Corporate Tax Credits for Research &
Development Projects
Maple could help your company recover thousands of pounds you are owed in the R&D
government scheme
Maximise your tax investment
- Have you invested in R&D activities in the past two years?
- Are you a private limited UK company?
- Is your business currently trading?
Watch this short video to see if you qualify
100's
Of businesses helped
R&D
In-house
specialists
£
No fee if HMRC don't accept your claim
10+
Years'
experience
What are Research and Development (R&D) tax credits?
Research and Development (R&D) tax credits are a government incentive designed to support businesses of all sizes in pushing the boundaries of what can be achieved. The scheme incentivises innovation by reducing the amount of tax liable on any profits directly relating to R&D projects. Where profits have not yet been made, the company can apply for a tax credit.
R&D tax credits can be extremely valuable to any company spending money on researching and developing new products or processes, or on improving existing ones. They are a great way to reduce your overheads.
No matter what sector you’re in, if you’re spending money on research and development, then you could be eligible to claim R&D tax credits.
The government wants businesses to develop new ideas, and they’re willing to help businesses fund this. That’s what R&D tax credits are all about. Whilst they are already used to great effect by many of the business giants, smaller businesses can benefit too – providing that they apply.
Is my company eligible for
Research and Development
tax credits?
The basic criteria that must be met in order to qualify for Research and Development tax credits are quite broad. R&D tax credits are often overlooked by entrepreneurs and small businesses, who assume they have to have an on-site laboratory or be involved in a significant research breakthrough to claim the credits. This simply isn’t true.
Many small and medium-sized businesses can claim R&D tax credits. You don’t even need to be an established business to claim for them.
They are particularly good for start-up businesses. This is because the costs incurred in the years when a company has no income can be carried forward to offset taxes on future profits. Your business may qualify for R&D tax credits if the following apply:
- You are a limited company in the UK
- You have spent money on research and development projects
- Your company has tried to develop a new, innovative product, process or service, whether it has worked or not
What are classed as qualifying R&D activities?
HMRC has provided guidance on what types of activity qualify for R&D relief. To qualify for R&D tax credits, a business must have undertaken a collection of activities aimed at overcoming a scientific uncertainty that could not be easily solved by a competent professional in that field.
In other words, you tried to do something that hasn’t been done before. Even if your project was not successful, you could still qualify.
If you’re doing at least one of the following things, then we would highly suggest that you check out R&D tax credits:
- Being innovative
- Surpassing current industry standards
- Pushing boundaries
What Research and Development (R&D) costs can be claimed?
Staff costs
All wages, bonuses, pensions and employment tax for staff involved in the project are allowable.
Software
Any software needed for R&D or involved in R&D activities can be included if it was purchased or developed for the R&D project.
Consumables
Any materials or resources which are used up or consumed in your R&D process. This can include things such as water, power and fuel.
Subcontracted R&D
Even if some of your R&D projects were outsourced to a different company, you can include this in your claim (at a reduced rate).
Capital Expenditure
If you buy or construct a building for the specific use of R&D, you can claim 100% of the costs against your tax on the R&D scheme.
What industries can apply for Research and Development (R&D) tax credits?
There is no formal requirement for your business to be in any specific industry to qualify for R&D tax credits.
Here are some of the more frequent sectors involved in research and development:
Agriculture, forestry, fishing
Mining and quarrying
Manufacturing
Electricity, gas, steam and air conditioning
Information and communication
Financial and insurance
Water, sewage, and waste
Construction
Wholesale and retail trade, repairs
Transport and storage
Admin and support services
Public admin, defence, and social services
Retail estate
Professional, scientific and technical
Education
Health and social work
Arts, entertainment and recreation
Other service activities
How much could I get from R&D tax credit relief?
How much you can get back will depend on your individual situation. The average claim can be worth tens of thousands of pounds. In some cases, it can be as much as hundreds of thousands. Below are some examples of claims that we’ve been involved in over recent years. Through these claims, we’ve successfully obtained thousands of pounds worth of Research and Development tax credits.
A chair manufacturer that makes chairs for the NHS, who then developed a specific and specialised design for spinal support, which includes waterproof mechanics. The R&D tax credits totalled to over £54,000.
An agricultural liming company adapted an office mapping phone app to map fields. This map includes the pH of the soil to indicate where to apply each product, which produced R&D tax savings of over £5,000.
A camper van conversion company introduced new production methods including the development of lightweight composites, with the aim to break a camper van's speed record. This generated a tax saving of almost £15,000.
A drain cleaning and surveying company pioneered the development of a purpose-designed vehicle with the capability of jetting the drains, as well as CCTV that surveys the runs immediately afterwards, using the same two-man crew. Their tax savings were over £30,000.
A renewable energy company produced a new hybrid inverter, along with a system to control the product. This generated a tax saving of £90,000.
An electrical power business developed an alternative product that replaces conventional current transformers at lower costs as it's smaller and intrinsically safer. The company has banked tax savings of over £170,000 from a two-year period.
Our Process
with more important things. The process is broken down into four main steps:
Step 1
Qualification Time
spent by you:
20
mins
One of our R&D tax credit experts will contact you to determine your eligibility. We ask a few simple questions about your product, your staff, and your processes. By the end of this conversation, we can usually tell you whether you qualify and if so, how much you may be able to save.
Step 2
Identification Time spent by you:
60-90
mins
Building off step one, our in-house R&D specialists work with you to determine exactly what activities qualify. Once we determine these, we’ll ask for some documents such as invoices, payroll records, and job descriptions. We’ll also discuss your profitability to help determine how we can prepare your case.
Step 3
Calculations Time spent by you:
30
mins
By this point, you have spent less than two hours, while we have spent time collating all the information for you behind the scenes. We’ve gathered and discussed your information, looked at your documentation, and have run the calculations that tell you how much we think you will save.
This is an exciting step for us because we have enough information to tell you if the figure from step one will be even bigger (which is often the case). We’ll then contact you to discuss what we have found.
Step 4
The Claim Time spent by you:
6-8
hours
In this step, we conduct interviews with the relevant employees in your company. This includes the people who have done the work and those involved in producing the product or service and bringing it to market. We ask them to provide information about their activity in the study.
When all that information is gathered, our team will perform the required calculations and pull together all the information on the necessary tax forms to keep you compliant.
At this stage you will get a detailed report that substantiates the numbers. These reports are the basis and the proof behind the numbers and will be critical to satisfy HMRC requirements. Once you have signed off the technical report, we submit it to HMRC on your behalf.
Our process
with more important things. The process is broken down into four main steps:
Step 1
Qualification Time
spent by you:
20
mins
Step 2
Identification Time spent by you:
60-90
mins
Step 3
Calculations Time spent by you:
30
mins
Step 4
The Claim Time spent by you:
6-8
hours
One of our R&D tax credit experts will contact you to determine your eligibility. We ask a few simple questions about your product, your staff, and your processes. By the end of this conversation, we can usually tell you whether you qualify and, if so, how much you may be able to save.
Building off step one, our in-house R&D specialists work with you to determine exactly what activities qualify. Once we determine these, we’ll ask for some documents such as invoices, payroll records, and job descriptions. We’ll also discuss your profitability to help determine how we can prepare your case.
By this point, you have spent less than two hours, while we have spent time collating all the information for you behind the scenes. We’ve gathered and discussed your information, looked at your documentation, and have run the calculations that tell you how much we think you will save.
This is an exciting step for us because we have enough information to tell you if the figure from step one will be even bigger (which is often the case). We’ll then contact you to discuss what we have found.
In this step, we conduct interviews with the relevant employees in your company. This includes the people who have done the work and those involved in producing the product or service and bringing it to market. We ask them to provide information about their activity in the study.
When all that information is gathered, our team will perform the required calculations and pull together all the information on the necessary tax forms to keep you compliant.
At this stage you will get a detailed report that substantiates the numbers. These reports are the basis and the proof behind the numbers. They will be critical to satisfy HMRC requirements. Once you have signed off the technical report, we submit it to HMRC on your behalf.
Apply for Research & Development tax credits
Ready to get started? Use the form below to apply for your Research and Development tax credits. One of our team will get in touch with you shortly.
Now what?
Our team will keep you regularly updated about the progress of your case and communicate with HMRC on your behalf if they have any queries.
It’s that easy. Our process is very straightforward and often takes less than 8-10 hours of total client time.
Where else can you invest such a small amount of time and get a payback of tens, or in some cases, hundreds of thousands of pounds? Whichever way you look at it, Research and Development tax credits are a great example of fantastic payback on time invested.
Crucially, the effort does not have to end after one claim. In many cases, as long as there’s an R&D tax credit available, you can claim them every single year. You will no doubt be able to improve the process each time.
The window to claim for Research and Development tax credits is just two years from your company’s year-end. So, you should start the process of making an R&D tax claim sooner rather than later.
How much will it cost?
With Maple, our process is designed so that you pay nothing upfront. We won’t expect payment until the credit has been applied or the cheque has been received. If HMRC doesn’t accept your claim, then you won’t have to pay a penny.
The benefits of claiming could be significant, so what are you waiting for? Contact Maple today for a free R&D analysis. Our experts will be able to tell you if you’re eligible to claim for R&D tax credits. We will be more than happy to discuss your situation and provide any further help or advice.
On average we claim back over £50,000 for our clients!
Any business in any sector can qualify. Find out how much you could be owed today!
Maple Accountancy is a firm of expert Business Advisors offering accountancy services, tax and business advice to owner-managed and family-owned businesses.
All clients are individual, and we tailor our service to your needs. Use the site to find out what makes us different and understand why you should appoint us.
Offices
Head Office
83 Friar Gate, Derby, DE1 1FL
01332 207336
Birmingham
3 Brindley Place, Birmingham, B1 2JB
0121 769 2197
Manchester & Leeds Chancery Place
50 Brown Street, Manchester, M2 2JG
0113 418 2078
London
1 Giltspur Street, London, EC1A 9DD
020 7127 0649
