What is an R& D Claim?

If your business undertakes research and development (R&D), you may be eligible to claim back tax relief to help cover the cost of carrying out the work.

To qualify, R&D must be within the field of 'science and technology' – but don't let this mislead you into thinking that your company must be carrying out scientific lab work or software development.

In fact, the definition of science and technology can be quite broad. For example, a fruit farmer working on new ways to harvest apples or a textile designer who develops a time-saving sewing technique both have the potential to qualify.

Another important factor to consider is that the research you've carried out doesn't actually have to be successful. You simply have to show that you have invested in R&D - even if the project ultimately failed, your business may still be eligible for a cash payout in the form of tax relief from HMRC.

Does my Business qualify for R&D Tax Relief?

To be eligible to claim R&D tax credits, businesses must be UK registered and liable to pay Corporation Tax.

HMRC does not specifically exclude any sector, although it does state that projects which seek to make an advance 'within a social science like economics or a theoretical field like pure maths' are not eligible.

As part of an R&D claim you must be able to show that your company:

• Looked for an advance in science and technology

• Identified an uncertainty within a process, product or service and tried to overcome it

• Invested in this project because it couldn't be worked out easily by a professional in the field

Your project must aim to create an advance that isn't just for use by your own business – the development should have the potential for wider benefits. For further detail, take a look at the government's Guidance on Claiming Research and Development Tax Reliefs

How we prepare your claim and submit to HMRC

We'll start by identifying areas where you are eligible to make a claim and then manage the complex application process on your behalf. This will involve talking to you & your team so that we can understand exactly what happens within your business.

We use cloud-based software to capture the information we need so that you are able to easily share data & narratives with us.

We will discuss expenses that are eligible for R&D and to what extent these expenses can be claimed for. We will also review the financial information and prepare the calculation to maximise any claim. We understand the importance of getting the numbers right and have a good understanding of your financial accounts.

We'll liaise with HMRC in case of further questions concerning the claim & ensure that you receive the correct tax relief due.

What can you claim for?

• Direct staff costs of people directly involved in the R&D activity

• Software and consumable items

• Qualifying expenditure on externally provided workers

• Subcontractors expenditure

• Water, fuel and power