This week, Steve Govey, Head of Research & Development (R&D) at Beavis Morgan, presented to delegates at the Innovation in Manufacturing Conference* on R&D Tax Relief and the preconceptions businesses have that they ‘don’t do R&D’ and therefore won’t qualify.
Steve explained that there are many myths around R&D Tax Relief, with the top 5 excuses for not claiming money back being:
- We don’t pay tax anyway
- What we do isn’t unique
- My research project proved unworkable
- My accountant says I don’t qualify
- I don’t have the time to bother
This is leaving many businesses missing out on this valuable government incentive offering money back for expenditure on R&D.
“While many companies are spending large amounts of money on developing their IT and infrastructure, as well as creating new and innovative products,” Steve explained to delegates, “One of the main reasons they don’t claim R&D Tax Relief is due to a misunderstanding by them or their professional advisers as to what constitutes R&D for the purpose of tax relief. Adding to this, is the misconception that something entirely new must be created, that failed projects cannot be included, and that loss-making companies cannot make a claim.
“The government rewards businesses for exploring unchartered territories and innovating, therefore projects which fail, are not completed, or make a loss can still qualify. Many business owners are also pleasantly surprised when I explain to them the breadth and variety of activities that qualify for R&D Tax Relief”.
Steve went on to explain that eligibility is not limited to activities taking place in laboratories and science-based research centres. R&D Tax Relief can often be claimed in far broader areas and various enterprises can qualify for significant tax reductions and gain a cashflow boost. Loss making companies can even claim a refund of up to 33 per cent of tax they’ve never paid!
“Running a business can be tough. There is so much to think about, you’re immersed in driving growth, and committed to achieving your targets – you don’t have the time to worry about R&D Tax Relief. But don’t fall into this trap! With expert guidance from an experienced professional, you’ll soon realise the scale of money you could be missing out on, and how little of your time it can take to access it.”
For further information or to arrange a no obligation preliminary meeting on how your company could qualify under the R&D Scheme, please contact Steve Govey or your usual Beavis Morgan Partner. You may also wish to view our R&D Tax Relief – Recent wins for our clients Spring 2019 update.
Further reading:
Business tips: understanding Research & Development Tax Relief
* Considered one of the leading manufacturing conferences on the annual UK agenda, Innovation in Manufacturing, part of the Manufacturing & Supply Chain Conference & Exhibition, focusses on how companies in the sector can build, launch and scale their products. The event attracts professionals from all corners of the sector, from supply chain and logistics, to Industry 4.0 and robotics and automation, sustainability, precision engineering and more. www.manufacturingevent.co.uk