What type of activities are considered eligible for R & D Tax Credit Relief?
Since starting Fiscale in February 2014 you would not believe the number of conversations we have had with prospective clients who completely dismissed their eligibility for R & D Tax Credit within the first 30 seconds of talking to them! Of course once we had "scratched below the surface" of what they actually do in 80% of cases it became clear that they were indeed eligible.
Does my business qualify for R & D Tax Credit?
There are really just two questions to answer:
Are we producing new or improved products, processes, services or software?
Did the design and development of those products involve some uncertainty for which the answers were not obvious?
Here are some examples which help to put R & D into context:-
The manufacturing sector accounted for over 32% of the claims made for R & D Tax Credit Relief in 2012-2013. When you consider the scope for creating new and improved products and processes within manufacturing it is understandable why this sector accounts for the most claims.
With the ongoing trend towards creating bespoke solutions to meet individual client requirements and the need to be constantly refining and updating products and processes to stay ahead of the competition there is a huge opportunity for manufacturing companies to capitalise on the benefits of the R & D Tax Credit Relief scheme.
We have worked with a number of manufacturing clients including Icarus Training Systems, the world's leading supplier of inflatable evacuation slides for training airline cabin crews.
Icarus satisfied the criteria for eligibility as their products are bespoke to the particular client's specifications. The design and development of the products also involves a degree of technological uncertainty. The variables for each client are unique to that client and the solution that is developed takes into account the client's specific training needs, the type of aircraft being used, their training programme and simulator installation.
If you are in manufacturing why not give us a call on 01440 708333 to find out if you are eligible?
Information and Communications
25.8% of claims for R & D Tax Credit in 2012-2013 came from the Information and Communications sector. The creation of bespoke software systems for businesses generally satisfies the criteria for R & D Tax Credit claims very well.
John Mayhew, the founder of Fiscale experienced first-hand the tremendous value that R & D Tax Credit can bring. Over a four year period John's business, HET Software, received a total of around £300,000 of R & D Tax Credit funding. HET Software was a market leader in developing software solutions for the domiciliary care market. A highly demanding market sector HET's clients were looking for a solution that was easy to use (for carers and admin staff alike), highly customisable and secure and delivering a return on investment in as short a timeframe as possible.
The development of new software is fraught with uncertainty, especially when the developers are pushing the technological boundaries in their quest for user friendliness and integration with other third party software.
If your business is software development we are confident that you will qualify for R & D Tax Credits.
Call 01440 708333 to find out more.
Whatever sector you are in for the sake of a five minute phone call you could be benefiting from some "free" money from HMRC.