How do R&D tax credits work ? Great question. We have all seen stories of businesses that have made the most of R&D tax credits to further what they do. But, without knowing the system inside out, it looks like something that might be out of reach for the small companies of the UK.
It looks complicated. That is something we all feel about tax from time to time, even when it is about money flowing back into your company from the HMRC.
It looks like something that only applies to big firms. Those that have their own specialist R&D teams with scores or even hundreds of people.
It looks like hard work to prove to the tax man that you tick all of their boxes. At Harlands, we get a lot of people asking “ How do R&D tax credits work ?” And our answer to most is – quite well, thank you. And that is set to continue for some time yet.
A track record of success
We are here to bust all the myths about R&D tax. It isn’t complicated if you use a trusted adviser who can talk you through the process. It doesn’t apply only to large companies. In fact, it is small firms that stand to benefit the most from R&D tax credits. It is not hard work. We take all the strain from you.
How do R&D tax credits work for our clients? They work because we help people to understand two main things –
The parts of their business that form part of an eligible claim for R&D tax credits
The benefits of making research and development an integral part of their business
With these two important pieces of information to hand, the people we work with submit successful R&D tax claim year after year. The average size of a claim we make on behalf of our clients is over £35,000 and we have a 100% success rate with the HMRC. That’s right – every claim we have made has been successful.
Helping small and mid-sized businesses
How do R&D tax credits work for the small business? They work because they plan for success. Part of this planning includes using R&D tax credits to put tens of thousands of pounds back into their business each year to –
Recruit new team members
Reward their exiting team
Take the money out of the business
Invest in more research and development
Whatever plans you have for your business, research and development can be a big part of it. How do R&D tax credits work for small businesses time and time again? It isn’t coincidence. It is part of their business plan. R&D tax credits are being seen as a solution to drive innovation across the world.
How do R&D tax credits work ?
They are designed to support the UK economy to develop new products, improve processes and make their systems of work better. We speak to businesses all the time who are just finding out that their latest project is eligible for R&D tax credits. The difference it can make to a business is huge. It transforms the way you operate. Receiving money back from the tax man is a rare occurrence and one that most don’t think they are eligible for. But there are qualifying claims uncovered across the companies of the United Kingdom just waiting to be sent to the HMRC for processing.
And this is where it gets really interesting.
With a 100% success rate and an average claim size of £35k, you would expect that this is something you might have to wait a long time for. Your expectations would be wrong. We can put a claim together quickly with your help. Then the claim can be processed and the financial impact back in your business in as little as 6 weeks. This comes in the form of money off your next tax bill or cash straight into your bank. That’s why we are so passionate about helping people with their R&D tax claims. In a single act, you can put a large cash injection back into your business.
How do R&D tax credits work ? Very nicely for the people we help. If you want to know more bout R&D tax credits, then get in touch with us today.
By Harlands Accountants LLP