R&D Tax Relief Case Study

MEDICAL – R&D Tax Relief Case Study

CLIENT

FD Solutions provides businesses with finance directors on a part-time basis. FD Solutions provides a finance director to a company’s requirements and budget.

THE SITUATION

The Welsh company was in the process of developing a medical device. The area of technology was a non- invasive screening system for medical conditions. 

RDP reviewed the denied claim and CRA “30-day letter” informing the company that their application for SR&ED funding was denied. After gathering contemporaneous documentation, RDP drafted a detailed response to address CRA’s issues. When a Notice of Assessment (NOA) was received, RDP prepared and filed a formal appeal on behalf of the company.

THE CHALLENGE

FD Solutions was concerned that a client of theirs, a medical start-up venture in Wales, was missing out on R&D tax credits. The accounting firm had either not recommended the program or had failed to get the company to evaluate the program in a serious manner.
The medical company had not previously made R&D claims for this work, but from initial discussions with RDP on the R&D scheme, it soon became apparent that it was one where the criteria for a qualifying R&D project were met.

THE RESOLUTION

Using its technology specialists, RDP interviewed the company staff and produced detailed project briefs for inclusion in a report for HMRC. RDP also worked closely with the client to ensure all of the relevant R&D activities and related costs were captured. To date, the company has successfully claimed over £20,000 in credits. While this may not be a significant amount for some companies, it was well-received by this early-stage venture. RDP also kept its fees in line with the financial benefits.