If you are claiming R&D Tax Relief and you have invested in patents or other equivalent Intellectual Property, you might be eligible for another cheeky tax relief known as Patent Box Tax Relief. Like R&D Tax Relief, Patent Box Relief is an incentive designed to drive UK companies to innovate, but with the specific intention of retaining Intellectual Property in the UK.    Read on to find out more about Patent Box Relief and how it interacts with your R&D Tax Relief claim.     WHAT IS PATENT BOX TAX RELIEF?  You may be able to make a Patent Bo ..read more

Surprisingly HMRC doesn’t set out any specific record-keeping requirements when it comes to R&D tax claims. It recognises that every business operates differently and the way they keep their records will reflect this. HMRC also understands that first time claimers won’t have fully audited records. However, if you’re not first time claimers it is good practice to establish a reliable record-keeping system as early as possible. This will only improve the success, and possibly enhance the value of your claim refund. More funds means more projects and less chance of HMRC questioning your co ..read more

Companies often think they can only make an R&D claim if they have funded the entire R&D project out of their own pocket. There are some nuances of course but is unlikely that external funding would void a claim. Companies can receive grant funding and R&D Tax Credits for the same R&D project.   Let’s take a look at the five most common types of funding and how they could impact your R&D Tax Relief claim:  1. PRIVATE FUNDING (e.g. share equity or private loans)    There are no restrictions on making an R&D claim if the project is funded by a priv ..read more

Almost every R&D Tax Relief claim that we process includes some form of software costs. But it’s hardly surprising, as every business today has software costs. We use software in just about every business process we do! It’s also the one R&D cost that most businesses feel comfortable with, when they come to make their R&D claim.   But what you might not know, is that there is one big grey area, meaning certain software costs cannot be claimed.  Let’s find out the fundamental rules when it comes to software costs, and what exactly this mysterious grey area is.&nbs ..read more

If you’re considering whether to bring some or all of your R&D project work inhouse versus outsourcing it, you’ll want to feel confident that you are making the right decision for your business operationally, but also to maximise your R&D claim.  Perhaps you’re about to kickstart a new R&D project, or you’re thinking about outsourcing as you don’t want to take on a new employee. Either way, we want to equip you with all the info you need to determine the best way to incur your R&D development costs: in-house or outsourced.  In the world of R&D you’ll often see ..read more

When R&D tax relief first fell onto your radar, you were no doubt blown away by the generous benefit, of up to £33 back for every £100 you invest in R&D. But the truth is – as you may have already experienced – for R&D projects, the amount you can claim ranges anywhere from 0 to 33%, depending on several factors.   As a business that is investing in research and development activity, and making R&D tax relief claims, it’s important for you to have as much certainty over your R&D claim, as early as possible, even as early as the planning phase. But why?  We ..read more

Even though you already claim R&D Tax Credits, there’s every possibility your company could be sat on ‘secret’ R&D. But what do we mean by ‘secret’ R&D? Well, we often come across clients that have developed or built a product, process or service specifically for themselves without recognising that what they are doing is research and development. They are so focused on just ‘doing’ the work they do, they don’t recognise the steps they are taking. It’s only when you start thinking in a certain way that you begin to recognise that you are sat on products, service and processes tha ..read more

Failure is a reality of life, and the same applies in business. Failure comes hand in hand with innovation; it’s a by-product of learning and development. So to innovate, is to take a risk. When you start an R&D project, you have no guarantee that the project is going to be a success. You know that. That’s why R&D tax credits exist, to incentivise businesses to take that risk.    FAILED R&D IS STILL R&D  R&D tax relief is not solely aimed at rewarding successful projects, it is intended to incentivise certain behaviour in businesses. The Government Guideli ..read more

Subcontractors. Maybe you use them, maybe you are one, maybe you are acting as one for a one off project. Whatever the circumstances, when it comes to R&D Tax Relief, subcontractors should be considered carefully when claiming R&D Tax Relief. On too many occasions now, we have seen companies miss out on money that should have been back in their business, and we don’t want that to be you.  In this article, we look at eight rules to determine WHEN subcontractors, and contractors can claim, and WHICH scheme you can claim via.     KEY TERMS & DEFINITIONS  L ..read more