Research & Development Accountants
What are research and development tax credits?
Research and development tax credits, also known as R&D tax, is an incentive scheme designed by the UK government to encourage firms to invest in innovation and science and be rewarded for doing this.
R&D tax credit works by being accessible to businesses and companies that pay to develop their products, processes and services – this makes the business or firm eligible for R&D tax relief.
To be more specific, if a firm invests money into creating new products, processes or services for their business, or if they invest money into modifying and updating an existing product, service or process, it is eligible to claim the R&D tax credit for R&D tax relief.
Who qualifies for the R&D tax credit?
Research and development tax exists across a huge spectrum of business sectors, with digital development and engineering companies and the beauty industry able to qualify for this tax relief.
If you are a director no matter how large or small your company or firm is, you are most likely eligible for R&D tax relief if you have extensive costs invested in developing your products and services.
To benefit from the government’s R&D tax incentive scheme, you have to be a limited company in the UK subject to corporation tax. You must have conducted qualifying R&D activities to grow and boost your company. You must have invested money into these development activities.
We can be your R&D department
Here at WIS, we have an expert team of hardworking and dedicated accountants that will assist you in the process of your claim for R&D tax, whether you’re a small or a large company. Our expert accountants will support you during your claim with their extensive knowledge and expertise in the area.
Passionate about supporting and giving valuable advice to SME businesses, our R&D department will support you with any financial needs your business may have, including a review to check if your business qualifies for R&D tax. You can partner with a specialist R&D accountant who will reduce your risk and guide you through the process of making a successful claim for R&D tax credit relief.
At WIS, we offer much more for your business than any other R&D consultancy. We pride ourselves on being SME specialists and adding a personal touch to our client relationships throughout making your claim. Our R&D accountants are well experienced working with both new firms and established businesses.
We can assist your company with a variety of financial services from understanding HMRC legislation on R&D to claiming R&D tax and other financial related issues. Our clients are a priority for our accountants, and our accountants can guarantee a professional and friendly service.
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How to make a successful R&D tax claim
Your business may be eligible to obtain R&D tax claims if it meets HMRC’s definition of R&D. The following techniques can be used to claim your R&D tax successfully:
Apply for unclaimed R&D tax credits
The Corporation Tax accounting periods are the basis for the qualifying R&D claim periods. Hence, it is possible to apply for an R&D tax relief which was missed previously. As specialist Research and Development accountants, we are able to provide you with the necessary advice and guidance on your credits and claims.
Utilize the correct expenses as R&D
HMRC has provided clear guidelines on which costs to be claimed and which should not be. Businesses will be subjected to an audit by HMRC if they fail to comply with the relevant regulations and standards. Therefore, a business must understand what costs it can claim as R&D to maximise the claim.
Obtain services from specialist accounting firms on your R&D claim
At WIS Accountancy, we have a team of specialist accountants who you can contact via call for specialist advice on all your R&D tax claim related queries. We use our expertise to aid companies to translate the rules and regulations on R&D. We have the ability to combine this with our knowledge of taxation and guide your business on how you can reinvest these claims back into your business
Choose your project
Choosing your project is the first step in qualifying for R&D tax and making a successful claim. The project, or projects, that you plan to claim from, need to consist of the activities that qualify you for your claim. The HMRC has outlined eligibility activities, and your accountant will inform you of the necessary information.
Choose a Research and Development scheme to apply to
There are two R&D tax relief schemes that you can apply to – the SME R&D tax relief and the R&D Expenditure Credit (RDEC). The scheme that you apply to depends on the size of your company, amongst other factors. Your accountant will help you choose the correct scheme to apply to that will most likely succeed your claim.
This step of the process is where you add up the number of eligible costs your business has. Once you have done this, you will have your total qualifying expenditure amount, which is the main figure of your company’s claim. If you are claiming tax relief under the SME scheme, there is an opportunity for enhancement at this stage. It is best to have a specialist accountant on hand during this process to ensure that the value of your claim will match the value of the HMRC interpretation of costs.
Submitting a technical narrative as part of your claim is most likely to prevent an enquiry by the HMRC. This technical narrative is an opportunity for you to showcase your company’s R&D expenditure by explaining what innovative development your company has done and how you have done it.
Completing your CT600 is simply showcasing financial calculations that have been worked out between the accountant and client. An experienced accountant will be able to support and guide you through this process.
File your claim
Once your company has combined your CT600 (Corporation Tax) with your technical narrative and your financial calculations, you can file this to the HMRC, and you have officially made your R&D tax credit claim.
What could your company receive from cash payout?
The cash payout that you will receive due to your R&D tax relief claim depends on several different variables. For example, your company’s sector, the total qualifying expenditure amount you have claimed, and your company’s size will all contribute to the cash payout that your company could receive.
According to the latest data, the average claim made by SMEs in the UK is £57,228. The average claim for a large company in the UK is £632 931 – larger companies can claim 11 pence for every pound they have spent on qualifying research and development activities within their business.
What makes us different at WIS Accountancy
At WIS Accountancy, you can depend upon our professional and friendly accounting service that will be firmly dedicated to achieving a successful R&D tax relief claim for your business. You can rely on us to use our extensive collection of resources, knowledge and expertise to smoothen the claiming process for your business. By operating with a fixed-fee service, partnering with Wis Accountancy is simple and straightforward cooperation that you can depend on.
To obtain the R&D tax credits and claims you will have to explain how your number of projects:
- contributed to an advance in digital technology and science.
- had the ability to overcome uncertainty
- had tried to conquer the uncertainties
- are not easily solvable or understood by a professional in the sector.
- showing that other efforts to find an innovative solution have failed.
- by getting the experts in the field to explain the uncertainties inherent in the work you do with the intention of applying for claims.
Contact WIS Accountancy now!
If you require an enquiry on our services or making an R&D tax relief claim for your business, you can get in touch with our team today through our contact form or by downloading our WIS Client service App for free. You could also call us on 0203 0111 898 to contact our expert accountants hassle-free service at an affordable fee.