RfM is proud to have claimed nearly £2 million in R&D tax credits for our clients, with an average client saving of £11,000 per claim. A common trend when we speak to new clients is the uncertainty around what classifies as R&D. We sat down with our Director, Tony Backhouse and Consultant, Sam Stocker, and let them explain how your business may be eligible to claim R&D tax credits.
What are R&D tax credits?
“R&D Tax Credits are used to incentivise research and development. However, many businesses don’t understand that a lot of the work they already do can be classified as research and development.” Tony explains.
“The key thing to understand is whenever you have had to think about how to solve a problem, perfect a process, improve a product or change a system, you’ve probably done R&D.”
Is it for me and my business?
If your business is a limited company and subject to corporation tax in the UK, you might be eligible for R&D tax credits.
Sam adds, “Remember, this isn’t anything to do with white lab coats! A lot of businesses still hear the words research & development and think “big science or tech companies” like NASA, Apple or Tesla. It’s really important for small businesses to stop thinking like this.”
Thinking about thinking
Tony emphasises how businesses should think about R&D, “Perhaps the best way to understand this is – if you have had to overcome a technical challenge, if you’ve had to stop and think “how are we going to deal with this then!?” If you’ve had to think about how to develop, improve or change your processes or products, you’ve probably done R&D.”
R&D activity does not necessarily need to lead to the development of a new product; it might result in the modification – and subsequent improvement – of an existing product, service or process. You do not need to have made a profit to qualify.
“The first step of our R&D claims process is to work with you to identify where R&D activity has occurred.” Sam explains, “We will then pull together the evidence and create a full technical report that is vital to a successful claim. Our aim is to keep the process as simple as possible for our clients.”
How can you claim
Tony concludes, “Get in touch with our R&D team, and we’ll do the no win, no fee work for you! All we need is a quick meeting to get under the skin of your business – and we’ll do the rest. This is a risk-free process. If we find that you can’t claim, the process will cost you nothing.”
“We’ve worked on successful claims with drinks manufacturers, pubs & restaurants, dairy farmers, glass makers, engineering firms and businesses across many other sectors,” Sam says. “Claims can be retrospective, going back two financial years with the rebate often coming back as a cash lump sum. We actually see a common trend of clients increasing their spend on R&D after the first successful claim, as it lowers the ROI required.”
RfM strictly follows HMRC guidelines, following a thorough due diligence process. Our team of experts has helped clients to claim over £1.25 million in R&D tax credits. With an average £11k saving per client, this could provide a generous income boost for your business. However, we have done many smaller claims, and have no minimum return. We want all our clients to invest in R&D, and reap the rewards.
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