R&D Tax Credit and Grant Blog
R&D Tax Credits- Are You at Risk?
When it comes to R&D tax credits under the SME scheme, the area of contracts and subsidies is very complicated, confusing and often misunderstood. HMRC knows this and has a current campaign to review SME R&D tax credit claims that are likely to run afoul of...
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How to Promote the Culture of Research & Development (R&D) in Your Company
The process of R&D, which includes technological advancements and improvements, involves finding new growth opportunities for your company. Today's business environment is constantly changing, and these changes are a reality that companies need to implement...
HMRC Enquiry? Ensure You Have These Questions Answered in Advance
With the number of R&D claim submissions increasing year over year and even more so with the pandemic, HMRC has hired over 100 new staff to deal with the number of R&D claims that have yet to be processed. Late last year, HMRC advised that they had averted...
The Case For Working With An R&D Specialist While The Programme Continues To Evolve
HMRC recently reported that approximately 15%-20% of R&D claim submissions were submitted without the support of an R&D tax credit speciality firm, such as RDP Associates. More likely than not, it is a by-product of several large accounting firms promoting...
Fact or Fiction: Can a Company Claim both R&D Tax Credits and Government Funding?
The short answer is yes. However, most claimants are under the impression that benefiting from both is not possible. There are two methods for claiming R&D tax credits, one under the SME scheme and the other is the Research and Development Experimental Credit...
Key Points From The 2021 Budget Announcements
Last week, Chancellor Rishi Sunak unveiled his latest Budget statement in the House of Commons. From a big picture perspective, I think the best news in the budget, from a government assistance viewpoint, is that the government is committed to raising the total...
How Will Coronavirus Government Support Affect Your R&D Tax Credit Claim?
The government has provided the following support measures for companies affected by the COVID-19. Here are a few of the Schemes we have commented on: Coronavirus Job Retention Scheme (CJRS)Job Support Scheme (JSS)Coronavirus Business Interruption Loan Scheme...
Accountants: Are You Proactive or Reactive with Your Clients Regarding R&D Tax Credits?
For all small and medium sized accounting firms, how confident are you that your clients and/or the R&D tax credit providers you are working with are claiming all eligible projects, activities, and costs? Given the new legislation rules, fraudulent claims that...
Food And Beverage Companies, Here Are 3 Activities That Qualify For R&D Tax Relief If You Are Still Not Claiming
Despite the Government’s efforts to encourage innovation through R&D tax credits, many food and beverage companies hesitate to claim. Those food and beverage taxpayers new to the R&D programme may think they are not eligible for Research and Development...
Brexit 2021, Another Lockdown, New Funding Support and What To Do
Britain has now officially left the EU. Changes involving trade are just one of the many areas that businesses will have to adjust to, in addition to dealing with the current Pandemic. We mentioned late last year that a 3rd lockdown is likely Post-Lockdown: What We...
We Mentioned History Repeating Itself in 2019, HMRC Are Now Requiring a New R&D Tax Credit Submission Form
WHAT’S NEW? As of April 1st, 2021, all companies submitting R&D tax credit claims be it Small and Medium Size companies (SME) whether it is for a reduction of tax liability, payable credit request and/or for Research and Development Expenditure Credit (RDEC) will...
December Year-End: Companies That Have Not Claimed R&D Tax Credits for 2018 – Time is Running Out!
For those companies that are unaware of the R&D tax credit submission rules, a company may submit an R&D claim up to two years after an accounting period year-end. In a nutshell, whether you are a start up, an established SME or Large company that has not...
Fraudulent R&D Claim Submission and Claimants Jailed, Eyeopener for All Claimants: Is Your Current Provider Asking or Involving You in Determining Eligible R&D Projects?
Recently, HMRC reported three men to the authorities that were involved in a fraudulent £29.5 million claim for R&D tax relief on a claim that had no merit and have been sentenced to a 21-year jail term. The fraud involved one company paying for services...
Post-Lockdown: What We Know, Where to Focus & How R&D Tax Credits Come Into Play
Regardless of what is happening with the markets worldwide, Covid-19 throughout 2020 has impacted companies of all sizes in many industries. Some companies continue to furlough staff, others are no longer making profits and others yet have ended up closing. That is...
Good News for SMEs- HMRC’s New Draft Legislation for R&D Tax Credits
Under the UK R&D Tax Credit programme, R&D costs incurred for work done around the world can qualify for R&D tax relief. This is a very generous aspect of the programme but one that was subject to abuse. Companies outside the UK, with no real business...
Is HMRC Getting Tougher on R&D Tax Credit Claims?
The R&D tax credit programme has now been in existence for about 20 years. Based on our experience in other countries like Canada, where the R&D tax credit program has been in existence for 35 years, one can better predict what is coming. Generally the first...
Companies Specialising In Numbers Are Good; However, They Do Not Have Technology Professionals For Maximising R&D Tax Relief
Claiming R&D tax relief requires a set of specific scientific and technological skills rather than number crunching activities to maximise claims. Most companies have firms that strictly focus on tax and audit services. And often times, companies believe that...
3 Key Areas To Consider Before Choosing Your R&D Tax Credit Adviser
1. Assess your present adviser’s experience of the tax industry The starting point is to determine a tax adviser’s tax qualifications and experience. Are they chartered tax advisers? Does a “specialist” service provider ask you what you believe is eligible? Does the...
Have You Been Advised That Innovation is a Criterion for Claiming R&D Tax Relief? If So, Hire a New Provider
Most companies are now aware that Research and Development (R&D) tax credits are a government sponsored programme designed to reward UK companies for investing in innovation. The programme is designed to be a valuable source because meeting R&D Tax Credits...
PAYE and NIC Cap returns for R&D. Will Your R&D Tax Credits Be Affected?
When the Research and Development tax credit programme was first made available to taxpayers, companies were unable to claim a payable cash credit if they had not paid any PAYE and NIC. In other words, if a company did not have any salaried employees and were...
Size Matters: The RDEC Scheme and The Real SME Test
The R&D tax relief scheme has now been in existence since 2000. The programme was initially designed to incentivise Small and Medium Enterprises (SME’s) and in 2002 was expanded to large enterprises. As of April 1st, 2016, the programme replaced the “large scheme”...
R&D Claims: An Infographic on HMRC R&D Tax Credits
What factors are at play when you file for your R&D claims with HMRC? Learn how to effectively leverage your cash flow with R&D tax credits. Our senior consultants at RDP are here to help you maximise your claims effectively. They will: Ensure all R&D tax...
The 6 P’s of Eligibility for R&D Tax Credits in UK
In the year 2000, the Government introduced Research and Development (R&D) tax credits. Since then the programme has gained popularity as the number of claimants have increased year over year. The primary reason for its popularity is that more companies realise...
Current R&D Innovation Grant Funding Opportunities in the UK
With Brexit looming large, there is renewed impetus for the Government to increase business support in the form of R&D innovation grants in UK to ensure industries maintain their competitiveness in the global economy. In April 2017, a new Industrial Strategy...
Can I Make an R&D Claim Without Employee Time Tracking?
In a perfect world, all R&D staff, or those working on an R&D project, would keep time reports that detail all their R&D activities. However, we are often asked, “how would I allocate our employees’ time if we did not keep time reports?” The overriding...
How Does UK Compare When It Comes to R&D Tax Credits?
As Brexit continues to leave a lasting mark of instability, businesses are caught wondering how things will shake out going forward. The UK heavily relies on trade with the rest of Europe. At the heart of trade lies innovation and introduction of new products and...
R&D Areas You’ve Almost Certainly Overlooked
There are nearly 50,000 businesses in the UK that claim R&D tax credits annually. But there are still many businesses that don’t know about the programme, or know about it, but do not think they qualify for it. Here are some tips on preparing an R&D tax credit...
Perspectives on R&D Tax Claims
You don’t know what you don’t know With the continuous increase in the number of companies that do R&D tax claims, there are still many businesses that don’t effectively leverage their tax credit.An example of this is a multi-site restaurant in the UK that...
BREXIT’s Impact on Innovate UK and R&D Tax Credits
With many uncertainties surrounding the effects of Brexit on the UK economy and its trade with the rest of the world, many are wondering what the government’s fiscal policies will be in the post-Brexit landscape. This includes its impact on R&D tax relief and...
Tips for Not Leaving Money on the Table for Your R&D Claim
When it comes to capturing costs against a qualifying R&D project, there are many misconceptions about the types of costs that can be included. After all, if a cost is necessary in carrying out the R&D it must surely qualify for the relief, right?...
The R&D Tax Credit Scheme: A Victim of Its Own Success?
RDP recently attended an HMRC Agent briefing, which gave some useful insights into the current state of play on the R&D tax credit programme and on certain areas of concern.Briefly, taxpayers are now more aware of this government-sponsored programme as there has...
R&D Tax Relief – Rethinking Remuneration Strategy for Directors
R&D tax relief is expanding rapidly with the number of claims made by companies increasing 20% year on year. In recent years, it has been very common for director shareholders to remunerate themselves with a low salary to maintain their National Insurance record...
What Should I Do If HMRC Decides to Keep My R&D Credits?
The following piece was originally published in BQLive Magazine Whether it's the first time or the fifth time your company has submitted an R&D tax credit claim, rather than receiving your cheque from HMRC, you might get a wordy letter.It goes something like this:...
How Do I Know if I can Claim R&D Tax Credits?
The following piece was originally published in UMi Over the last several years in the UK, the research and development (R&D) tax credit programme has gained popularity and the number of claim submissions continues to increase year on year. The programme is...
What To Do If You Receive This Response from HMRC?
So, you’ve filed a claim for R&D Tax Relief and patiently waited for HMRC to issue your tax credit refunds. Then you receive a response from HMRC with the following: “The BIS Guidelines refer to an advance in science or technology as an advance in overall...
Why Partnering with an R&D Tax Credit Provider Helps Your Bottom line
Over thirty years ago I left EY with the goal of starting up my own accounting firm. By far the best way I found new clients was by offering R&D tax credit services. I found assisting clients with R&D tax credit claims to be a value-added service. As a...
UK Fintechs: Funding Opportunities for a Leading Tech Sector
Too Early To Call It would be too early to claim that London’s banking giants have become a shadow of their former selves simply because FinTechs in UK are taking this well-entrenched industry by a disruptive storm. FinTechs have been leveraging powerful multi-mode...
How to Leverage UK Small Business Grants
Navigating the landscape for R&D grant funding can seem like a daunting task. Companies seeking small business grants for support to grow and innovate can potentially access millions of pounds in government subsidies, but must go through layers of programming to...
Claiming Contracted and Funded R&D Work for Tax Credits
Whether you are new to R&D tax credits or have been claiming regularly, the R&D Tax Relief programme is not always straightforward to figure out and the rules can be confusing to taxpayers. We frequently receive questions from companies, both those new to the...
Why It’s a Challenge to Choose the Right R&D Tax Credit Provider
When it comes to selecting an R&D tax credit provider, the task is usually assigned to a company’s CFO, or in smaller organizations, the owner. The selection process is typically based on receiving recommendations from a trusted advisor, business associate or,...
How to Prepare for R&D Tax Credit Relief
Research and Development (R&D) tax credit relief by the Government of the United Kingdom is becoming increasingly popular among UK businesses as more companies explore its benefits. However, there are many businesses that, due to a lack of expertise in R&D tax...
R&D Tax Credit Best Practices: Why You Should Not File for R&D Tax Credits…
…If There is No Expert Advice Involved For those businesses that have been trading since 2000 and fortunate enough to take advantage of RDEC accounting treatment for the last 17 years, their R&D activities have resulted in greater investment in the innovation...
New HMRC Rules for R&D Software Based Claims
Her Majesty Revenue and Customs (HMRC) is responsible for administering and processing R&D tax credit claims through the corporation tax system. R&D tax credits have increased significantly over the last several years, and today UK businesses can reduce or...