70 per cent of UK firms are significantly under-claiming Research & Development (R&D) Tax Relief each year.
A report by Financial Director says not enough is being done by business advisers to encourage their clients to claim for this valuable tax relief, especially considering that the UK government plans to increase the rate of UK R&D investment to 2.4 per cent of GDP, a rise from the current rate of 1.6 per cent.
The process of claiming R&D Tax Relief can be complex and it requires specific technical expertise to present the application effectively to HM Revenue & Customs. This, the report says, may be why many accountants don’t offer R&D Tax Relief as part of their service. However, it goes on to say that this “lack of confidence or the latest knowledge results in a risk averse culture leading to endemic under-claiming.”
Steve Govey, Partner and Head of R&D at Beavis Morgan, is a specialist adviser to businesses in relation to the successful application of R&D Tax Relief and has helped many businesses make significant claims when they were previously unaware that they could.
He maintains that, whist it can be a complex process, with the right adviser it may be easier than you think to claim tax relief. Here are some of the situations Steve regularly comes across, asked and answered:
- Our accountant says we don’t qualify – That’s because they don’t understand it themselves and don’t want to look unknowledgeable.
- I don’t work in a laboratory, so my work isn’t relevant for R&D Tax Relief – The majority of our claims are for some form of software development, but can encompass an enormous range of activities.
- It’s too complicated to bother – At Beavis Morgan, we have a proven methodology, accepted by HMRC. We can often obtain a repayment within 6 or 8 weeks of our first meeting. Our recent best was 31 days!
- I don’t want to risk the expense of applying– Our fees are usually fully contingent on success.
Does your business undertake research and development? Many businesses incur costs which are not separately identified as research, because ongoing enhancement of existing products and services “is just what we do”. There are additional tax deductions for qualifying research and development expenditure and, whilst the rules can be convoluted, we have a team of experts who can maximise the value of any potential claim.
Speak to us today to set the benefits in motion. Our proven methodology offers a painless approach towards obtaining R&D Tax Relief.
Contact Steve Govey or your usual Beavis Morgan Partner for further information or to arrange for a no obligation preliminary meeting on how your company could qualify under the R&D Scheme.
Further reading:
Click here to view our recent wins for our clients (Spring 2019 update).
R&D Tax Relief for SMEs – A user guide