Research and Development tax credits can often be claimed in far broader areas than thought possible. Loss making companies can even claim back tax they haven’t paid in the first place!
At Beavis Morgan, we have recently made substantial successful claims for an advertising business that had developed a workflow and project management software programme, and a media storage company that had developed a unique system for logging, storing and organising digital and analogue media files.
We discussed the underlying technology with both companies and extracted the relevant financial information from their records to compile robust claims that were accepted by HMRC, giving them tax breaks for investing in research and development.
The quantum of possible repayments (up to 33% of expenditure) can be a useful source of funding – particularly for early stage or pre-revenue companies where banks and investors can be somewhat reticent.