What Are R&D Tax Credits?
Introduced in 2000, R&D tax credits are the Government's way of encouraging exciting new products and services. Why? Because by helping to reduce some of the financial risk for technology companies, the Government hopes they'll find new and innovative techniques to make the UK more competitive internationally
Who Is Eligible?
The Government's R&D tax credits scheme isn't just for companies with R&D departments and men or women in white coats. Indeed, you may be surprised to discover that any company that spends money trying to improve a product or service through a technological advance, using qualified staff and appropriate project controls, and where there's doubt about the project's success, is likely to be eligible. Around 8,700 SMEs and 1,900 Large Companies are already claiming more than £1.1bn each year in R&D tax relief from HMRC, but many more thousands aren't. Is your company one of them?
Does Your Company Qualify?
HMRC’s eligibility criteria are available on the hmrc.gov.uk website - but be warned, it's not the easiest thing to read and understand and there’s a lot to consider! At Jumpstart however, we like to keep things as simple as possible. By taking the 30-second test below, you may be able to gauge whether your company would benefit from a more detailed assessment of its projects.
Q1 - About Your Company's Approach To Technology
I would say that my company attempts to develop new technology, as opposed to just using it. Some of our attempts to do so have failed for technical reasons, as what we were trying was surprisingly difficult to achieve. Yes or No?
Q2 - About Your Company's Approach To Improvement
I would say that my company tries to make measurable, objective and significant improvements to the design and implementation of its products. Yes or No?
Q3 - About Your Company's Approach To Problem Solving
When faced with a challenging technical problem, my company uses internal, qualified and experienced staff to design the solution, using sub-contractors to perform easily defined and non-challenging tasks. Yes or No?
How Did You Get On Then ?
If you have answered Yes to all three or even two out of three, then there’s a good chance that we’ll be able to help you and it would be worth talking to us so that we can make a more detailed assessment of the projects you've undertaken.
How Does Your Company Benefit?
Companies are able to deduct up to 225% of qualifying expenditure when calculating their profit for tax purposes. What's more, you can claim R&D tax relief on expenditure that's up to three years old (your current financial year and the previous two). The precise size of the tax credit will depend on the size of your company, its tax rate and how many of your activities are eligible.
Why You Should Work With Us
At Jumpstart, we believe that your company gets the best results by using people who actually understand the science of what you do. That’s why every member of our delivery team has a first or postgraduate degree in an area of technology or science. We are not accountants – we are chemists, biologists, engineers, physicists, computer scientists and software engineers.
The Benefits of our Approach
Claim Size - Generally, a technology-based approach results in larger claim sizes. By investing our time in your technical staff, we can identify projects that are less obviously eligible and can therefore justify greater R&D expenditure.
Claim Success - Jumpstart has a strong and proactive relationship with HMRC’s R&D Units around the country. Where questions arise, we deal with them promptly and courteously, helping to protect our clients’ extremely high success rate.
Claim Defence - When HMRC’s tax inspectors start asking more challenging questions about your projects, it’s comforting to know that you have a team of PhD's and MSc's available to argue the science of your case. If your claim is handled by someone who doesn’t fully understand your technology, they're unlikely to be as effective in discussing your position with HMRC’s specialist R&D tax inspectors.
How Do I Make a Claim?
You could make a claim yourself – by compiling a detailed technical report and exhaustive financial documentation. HMRC provides plenty of guidance and advice – it runs to several hundred pages in fact.
You could leave it to us. We have a proven track record in making successful R&D tax credit claims. We know what to claim, how to claim and, perhaps most importantly of all, all of the many pitfalls to avoid. Finally you'll be safe in the knowledge that if you don't ultimately qualify for R&D tax credits you won't owe us a thing as our fees only come out of what we get back from the HMRC on your behalf.
What's the Next Step ?
Contact Mark Lear of Jumpstart: -
Email - firstname.lastname@example.org
Mobile - 07967 462704
Mark has over 25 years’ experience in front-line sales and account management, which is just as well because that what he’s responsible for at Jumpstart. From networking and communications solutions, financial software for manufacturing and distribution companies, business intelligence and data warehousing applications to penetration testing services, Mark has worked with all sizes of businesses from SME's to large corporates and is ideally suited to analysing and advising on R&D eligibility.