5 'Did you knows' to demystify the R & D Tax Credit scheme
1. Did you know...
One size does not fit all
When it comes to the R & D Tax Credit scheme, no matter how small or how large your company is, there is a scheme to cover your business.
Over 99% of the businesses in the UK are classified as small for the purposes of R & D Tax Credits.
If you employ less than 500 people and have a turnover of under €100 million or your gross assets are below €86 million you may be eligible for R & D Tax Credit under the SME scheme.
During the period 2000-2013 over 28,500 SMEs have submitted claims under the SME scheme - just a small percentage of the businesses who could actually benefit from this valuable tax relief.
If you employ more than 500 people and your turnover is over €100 million or your gross assets are over €86 million then you would be assessed under the Large Company scheme.
From 2002 until 2013 over 7,000 companies had made claims under the Large Company scheme.
Remember - even if you are a "one man band" if your activities involve producing new or improved products, processes, services or software or there is some element of uncertainty involved in the design and development of products you could be eligible for some "free" money from HMRC!
2. Did you know...
You don't have to be in profit
Whether you are making a profit or loss, if you are eligible, you can claim R & D Tax Credit. Under the SME scheme a loss-making business can even benefit more than a business making a profit!
The scheme allows the total amount of the loss remaining after the R & D Tax Credit claim to be carried forward and offset against future profits or carried back to the previous accounting period and offset against profit. A third and very favourable option is to surrender the losses to HMRC in return for cash!
From 1st April 2015 the cash credit can be worth up to 33.35 pence for every £1 of R & D expenditure, for every £100 spent on eligible R &D expenditure you could receive £33.35. This money can effectively go straight back into your cash flow.
3. Did you know...
You don't have to wear a white coat
The words R & D conjure up the image of scientists in white coats or eccentric inventors in their garden sheds. This image could not be further from the truth, for example the manufacturing sector accounted for 32% of the claims for R &D Tax Credits in 2012-2013.
Our clients include manufacturing companies; electronic engineers; metal fabricators; digital marketing consultants; food producers and consultants; agricultural companies, renewable energy, label manufacturers, plant and machinery, PCB developers, architects and software developers.
We have extensive experience of working with software development companies and have successfully secured over £285,000 of R & D Tax Credit on behalf of clients in this sector in the last year.
4. Did you know...
It doesn't have to take forever to process an R & D Tax Credit claim
12 weeks is the average time it takes Fiscale to process a claim for R & D Tax Credit. For the majority of our clients from the day of our initial contact to the day they receive a cheque from the HMRC is within 12 weeks.
Since starting Fiscale in February 2014 we have a 100% success rate with the claims submitted to HMRC and have claimed over £1.7 million on our clients behalf - quickly and with limited input from them. We take away the complexity of R & D Tax Credits and remove the stress of dealing with the HMRC... guaranteed!
5. Did you know...
The quickest and easiest way to demystify the R & D Tax Credit is to give us a call
A quick call to Fiscale will soon establish whether you are missing out on the "free money" from HM Revenue & Customs. Call 01440 708333 to find out more.