Research & Development (R&D) is recognised by the government as being important for business growth and is actively encouraged through a range of tax incentives.
To date the average tax refund/saving per claim completed by Bulley Davey has been in excess of £200,000.
What are Research & Development tax credits?
Research & Development tax credits are a Corporate Tax relief that may reduce your company’s tax bill.
What does this mean?
To a business this means tax relief may be possible if you are seeking to:
- Develop new products, services and processes
- Improve old products, services and processes
- Adapt existing products, services and processes
If you are investing in resources to keep ahead of the game, doing something that is innovative or unique or working on solving a problem that has never been solved before then you may already qualify.
In other words characteristics of any business trying to gain an edge on their competitors.
Types of qualifying activities
We are not just talking about men in white coats. BDR&D has extensive practical experience in dealing with wide ranging claims across many industries.
Just a few of the example activities that qualify…
Food & Drink
- Science/technology involved to re-formulate a product
- Nutritional value, cost, GI value, sodium content, shelf-life
- Chemical testing in lab
- Pilot to full-scale production
- New materials, chassis/body configuration, lighter, fuel efficient, emissions, regulation – driven
- Designing and building prototypes
- Manufacturing process – “scale up” of production: improve efficiency,
- Process changes: improve efficiency, reduce cost or speed up cycle, less
- scrapping of materials, recycling
- Trialling new materials for sale or production, including use of sustainable resources
- Development of new cheaper, or greener structures and materials
- New tooling and machinery processes for eventual sale or commercial use
- Adapting technology for off site fabrication
- Developing new operating systems or languages
- Creating new search engines using materially new search methods
- Resolving conflicts within hardware or software
- Creating new encryption or security techniques
- Using old or legacy software but in a new way
- Trialling new varieties
- New growing methods
- Automating manual growing/harvesting operations
- Trialling new crop protection methods
- New products
- New processes for waste removal or recycling
- Using new technology to create alternative power and fuel sources
So let’s talk numbers
The following is an example of potential tax savings based on £100k of qualifying R&D expenditure:
|Further tax saved @20%||
But I haven’t paid that much in tax!
Cash paid to you @14.5%*
We can help you identify all the costs
These can include, but are not restricted to, staff costs, consumables, power and water and subcontractors.
*rates applicable from April 2015
Don’t just take our word for it…
“We have a long standing relationship with our existing firm of accountants and were not in the market to change.
However, we were introduced to Bulley Davey through a common contact who suggested we had an informal chat about our business activities. By allowing a fresh pair of eyes, and someone with a specific specialist perspective, we identified numerous projects which Bulley Davey presented to HMRC on our behalf.
We had no experience in R&D claims prior to the Bulley Davey team’s involvement but as a result we have made valuable savings in corporate tax in the last year.”
Phil Ampson, Director, Ark Fabricators Limited
What can we do
- Identify qualifying activities
- Analysis of accounting records to establish how much will qualify
- Prepare the claim and supporting documentation
- Negotiate on your behalf with HMRC
- Review and advise on existing claims
So why use BDR&D?
So why choose to work with us?
In excess of £7 million tax saved of on behalf of clients.
An average tax refund/saving to date in excess of £200,000.
100% of all projects submitted to HMRC approved.
An enviable relationship with HMRC due to our detailed understanding of the rules with regards to qualifying activities.
Our background in accountancy ensures that we can take you through the entire claim process from identifying qualifying activities to receiving the tax benefit. In addition we are qualified to maximise the claim and the resulting tax benefit.
We do not normally charge you until your refund has been agreed with HMRC.
And finally, you do not need to change your accountant. We can work independently on the claim.
Andy Atkins, Director
Phone: 01775 766633
Mobile: 07968 327833
Chris McKenna, Associate
Phone: 01406 423166
Mobile: 07786 268610
Nick Barks, Director
Phone: 01733 569494
Mobile: 07887 714915