Research and Development (R&D) tax reliefs exist in order to incentivise businesses to work on innovative projects. As well as being fully trained and qualified in Chartered Certified (ACCA) Accountancy, Perrigo Consultants are also specialists in this area of tax, as Chartered Tax Advisers (CTA), and in our considerable experience, businesses often fail to claim for R&D tax relief because they assume the level of innovation required to make a claim is much higher than it actually is. In fact, all that’s required is an observable advance in any area related to science or technology.
Such improvements might entail making changes to a manufacturing process, developing dedicated software systems, innovating a new product or even just making modifications to an existing product. Furthermore, if your company is paying people to resolve technical problems, there may also be some scope to claim R&D relief.
Companies that are eligible can obtain extra relief on qualifying costs, which can either reduce taxable profits or can create or increase tax losses, with such losses capable of being converted into a cash refund when surrendered to HMRC.
The level of R&D tax relief is actually very generous so it’s definitely worth your while to pursue it. For example, an SME that incurs £100,000 of qualifying expenditure on salaries and materials could save as much as £26,000 in tax. Companies that are eligible can also retroactively claim for the past two financial years, which can be especially beneficial for new claimants.
Many companies also fail to claim for research and development tax relief because they assume the amount of work it would take to put together a claim would be too high. This is where we at Perrigo Consultants come in. We understand the complex legislation and all the guidance surrounding the scheme and we can make the process extremely straightforward for our clients.
How Perrigo Consultants can help you with research and development tax credits
At Perrigo Consultants, we aim to assess a company’s eligibility quickly and efficiently, then we complete the process painlessly, making sure our clients’ claims are totally compliant.
We begin with an initial discussion, during which we explore whether an R&D tax relief claim is possible. We follow that up with a more technical meeting, during which we work with you to identify which projects qualify as R&D projects and which costs to include in the claim.
Then we produce a claim document summarising everything we’ve learned and once you’ve approved the document, we submit it to HMRC on your behalf. After which, in due course, your company will receive its reward for the R&D work it has already undertaken.
Taking on the burden of making claims on behalf of companies has already proved hugely successful for Perrigo Consultants and our clients. To date all of our claims have been accepted, meaning we’ve helped companies gain access to thousands of pounds in tax relief across a broad spectrum of different industries.
If you think you may be eligible for R&D tax relief and would like some help in turning your innovation into cash, give us a call at Perrigo Consultants today on 01299 488860.