R&D tax credits
R&D tax credits help businesses to offset the cost of their research and development activities, reducing the amount of corporation tax they pay. Clayton & Brewill can help you to make a successful claim for this valuable R&D tax relief.
The government introduced R&D tax credits to reward companies that innovate; recognising that achieving a competitive advantage is an expensive business. The credits can be claimed against employee costs, staff provider costs, physical materials, software, and some utilities costs.
Clayton & Brewill can help you to make a R&D tax credit claim as part of the corporation tax return – either at the time of the return or as an amended return.
HMRC allows claims to be made up to two years after the end of a corporation tax period.
Are we eligible for R&D tax credits?
If you can demonstrate that you are investing in developing new products and processes or enhancing existing ones then you are likely to be eligible for R&D tax credits. Our R&D tax credit specialists in Nottingham can talk through your situation and help establish your eligibility.
How much will it cost to apply for R&D tax credits?
Many advisers charge on a percentage basis for R&D tax credits – sometimes as much as 25% of the amount reimbursed, which can be quite a significant sum when the claim is large. At Clayton & Brewill we charge for R&D tax credit claims on a time-only basis, making it a much more affordable option. By way of example, a recent successful claim for £19,000 of R&D tax credits cost our client less than £1,400 – a very worthwhile investment!
For more information on making a claim for R&D tax credits contact Clayton & Brewill on 0115 950 3044 or click here to email us.
Case study: sparking a £50,000 tax credit boost
Clayton & Brewill helped Heanor-based DB Brooks Electrical Engineers to secure £50,000 in R&D tax credits for ‘day-to-day’ innovation.
Established in 1974, DB Brooks has evolved from working mainly in the animal feeds, flour milling, and grain handling sectors to become a fast-growing and innovative electrical engineering provider on a wide range of electrical engineering projects.
Doug has been working with DB Brooks in 2014, as he explains:
“When we started working as accountants to the team at DB Brooks it was clear that there was significant process improvement and day-to-day innovation sat within their core business activities.
“Their approach is very much bespoke, with the electrical engineers finding the right solution for each individual client. It seemed a perfect opportunity to apply for R&D tax credits, so we worked through the numbers and made applications to HMRC for the two most recent financial years.
“Within less than three months, DB Brooks had received £25,000 for each of the two years in question – a great example of how ‘day-to-day’ process improvements can be eligible for R&D tax credits.”
If you think you might be eligible for R&D tax relief or would welcome a conversation about how to apply, please get in touch with us at Clayton & Brewill. You can call us on 0115 950 3044 or click here to email us.
DB Brooks Limited
R&D tax credits had been mentioned to us before but never progressed. With Doug Perry’s help it was a pretty straightforward process and we can now use the extra cash to help with our ongoing growth and development at DB Brooks. I’d encourage other businesses to investigate claiming R&D tax credits – it’s been a real boost to our bottom line.
Darren Brooks, DB Brooks