Contrary to popular belief, the oil and gas industry offers many opportunities for R&D Tax Credits. Far too often, companies in this industry are unaware of their eligibility or the extent of their eligibility. R&D activities do not necessarily have to take place in traditional R&D Departments. Innovation is an integral part of the industry and efforts to stay competitive are potential opportunities for R&D tax relief. The following activities more likely than not will be eligible if carried out by a company in the oil and gas industry:

What Qualifies as R&D?

  • Offshore structure design with respect to: Generator and Compressor Modules, Process Modules, Quarters, Equipment Skids, Jackets & Helidecks.
  • Development and Testing of Plug and Abandonment Solutions.
  • Development and Testing of Turnaround and Shutdown Services.
  • Fuel Combustion Testing.
  • Plant Design with respect to: Pressurization, Safety, Chemical Segregation & Environmental and Pollution Control Systems.
  • Wastewater Treatment Solutions.
  •  Refining Issues.
  •  Drill Design and Improvement.
  •  Containment Systems.
  •  Environmental Testing and Remediation.

Bottom Line Benefits?

If your company is carrying out R&D and considered an SME, your benefits from claiming tax credits range between £0.25p to £0.33p for every £ of R&D expenditure.

If your company is carrying out R&D and is a non-SME, the benefit you receive is an “above-the-line” tax credit, which equates to approximately £0.13p for every £ of R&D expenditure.

Whether your company is in profits or losses, cash benefits can be obtained.

These are 2 prime examples of RDP Associates (RDP) facilitating R&D claims for both an SME and a Large company:

Oil Company in London (SME)                               Gas Company in Aberdeen (Large)

  • £6m in turnover/£300K in losses           –  £2 m in turnover/£1,050K in profits
  • R&D Claim 2017 – 2019                                     –  R&D Claim 2016 – 2018
  • £145K in R&D expenditures                              –  £400K in R&D expenditures

    £49,000 Tax Savings                                              £52,000 Tax Savings

How Much Time Will You Have to Commit to the R&D Claim Process?

RDP’s process is designed to advise what is eligible, carry out 98% of the R&D claim process and most importantly only request 2 to 3 thirty-minute meetings at most, as well as sample documentation requests on work that RDP deems eligible.

One of our last steps is to cost out your R&D claims after we have focused on the science and technology undertaken.  We would then work with your accountants to ensure the R&D claim has been e-filed.  Should an HMRC Enquiry take place, our services include defending the R&D claim(s).

Get in touch with us here for a free consultation.