Richard Linsell is a Research and Development (R&D) tax credit specialist with extensive experience in helping small and medium sized UK businesses and their advising tax accountants claim R&D tax credits.
Prior to this role Richard has over 35 years of multiple retail management with 28 years spent at board level, Managing Director & Group Operations Director. Many years experience in acquisitions, new start ups and company mergers. Highly motivated with a passion to achieve success with all levels of business opportunities.
Strategy Development – Growing sales & services – Business Development – Managing People & Mentoring – Financial Control – Budgeting – Maximising Profits – Managing Legislation – Marketing.
Business servicesWHAT ARE R&D TAX CREDITS?
• Research and Development (R&D) Tax Relief and Tax Credits were introduced for SMEs (Small and Medium Enterprises) in April 2000 and for large companies one year later.
• They apply to limited companies and credits can be offset against Corporation Tax or, where there are no profits, a cash credit is available – all subject to qualifying conditions being met.
• Since April 2011, qualifying expenditure can be treated at 200% of value for Corporation Tax computations and in April 2012 it rose to 225%
• Prior to 9th December 2009 a SME had to own the resulting intellectual property of R&D in order to qualify. From that date this condition no longer applies.
• Qualifying costs can be internal labour costs, a proportion of sub contracted R&D work and the cost of qualifying direct consumables and hardware.
• Claims must be made within two years of the financial year end in which they were incurred.
MANY SMEs ARE UNDERCLAIMING OR NOT CLAIMING
Usually the critical factor for a small business is understanding the scope of what can be claimed in terms of eligible projects and then writing a technical justification to support their claim for R&D Tax Credits. This is what we do.
R&D can include advances in science and technology to do things like…
• Create a new product or improve an existing product
• Develop a new service or improve an existing service
• Design a new business process such as to improve organisational efficiency
And therefore can include:
• Adapting and developing existing software to create innovative new ways of doing things
• Building complex websites or software applications
• Integrating different technology platforms or devices involving complex systems integration
• Using science or technology in an innovative way to create a new product or improve an existing product, process or service.
If you seek help and advice from a specialist you are likely to increase the value of your claim as evidence seems to suggest that many companies’ under-claim or worse still don’t claim at all because they have difficulty interpreting and applying the guidelines.
Questions to Ask
If you are the owner of an SME or you have SMEs as your clients and you want to work out if there may be qualifying R&D being undertaken, look back on the last three years and ask yourself these questions – has the company invested time or/and money in:
• Creating, or attempting to create, any innovative new products?
• Developing new processes for manufacturing or other business processes to gain competitive advantage?
• Taking on development projects where the work is experimental and they take the risk?
• Creating, or attempting to create new services or materials?
• Designing, installing and trialling bespoke engineering solutions or projects?
• Failed projects of the above types?
If your answer to any of the above questions is yes we recommend you talk to us to check out whether the company may qualify for R&D tax credits.
Published: 3rd January 2017