Learn more about R&D
What is Research & Development (R&D) Tax Relief? —
R&D Tax Relief is a HMRC corporation tax incentive designed to encourage and reward companies of all sizes and all sectors who are engaged in innovation. The advantage of making a claim is a cash benefit to the company which can be as much as 33% of the qualifying expenditure identified.
There is a common misconception that only companies with teams in white lab coats will qualify however this is far from reality. Regardless of sector; if a company is spending money on research and development then they may be eligible to claim R&D Tax Relief. CBTax support thousands of companies across the UK, covering all sectors in making successful claims. Our experienced team can identify whether a claim could be possible that could fuel your desired growth plans whether this is to support further innovation, purchasing an asset or profit extraction.
Our Process —
The team at CBTax have worked with HMRC for many years, we know what they need to see to understand your innovative activities and ultimately process your claim – this is why we have a 100% success rate. Our approach is robust, proactive and we deliver.
1 — Free consultation
Our R&D Technical Specialists and Chartered Tax Advisors will have a meeting with you to evaluate your business and its activities to identify whether you could qualify for an R&D Tax Relief claim. They’ll also run through our process with you and how we can ensure the claim is prepared in an efficient manner for you and your team.
Our team pride ourselves in project managing the entire process for you and the way we deliver the claim will ensure that there is minimal disruption to you and your business.
2 — Technical Discussion
Our team of R&D Technical Specialists and Chartered Tax Advisors will meet your key members of staff to discuss with them the work they are undertaking and whether this qualifies as meeting HMRC’s criteria of being eligible for R&D relief. Technical discussions typically take around 2 hours of your time – causing minimal disruption to your day. Our specialist R&D team will then prepare technical reports on the projects discussed at our technical discussion meetings.
3 — Cost Extraction
Our Chartered Tax Advisors and research analysts will extract the qualifying costs that can be included in the R&D claim, ensuring that the claim is accurate and maximised. Not only are we looking at making a retrospective claim but also spotting opportunities that could support a larger claim in the future.
The tax legislation is complex and by using our Chartered Tax Advisors ensures that only the costs that qualify are included; reducing the risk of enquiry from HMRC. Chartered Tax Advisors have undertaken the “Gold Standard” tax qualification; being the top of the field for providing tax advice. This is why your R&D claim is in safe hands with CBTax.
4 — Report Prepared
Our team of Chartered Tax Advisors and Technical R&D Specialists will prepare a robust report that covers both the tax aspects of the claim but also the R&D technical projects. Not only this, we include as much information in the report as possible to minimise any questions HMRC may have.
Previous experience from our team means we understand exactly what HMRC are looking for in the report and this reduces any questions that HMRC may have which leads to your claim being processed more quickly, releasing the rewards for your innovative projects.
5 — Collaborative Review and Submission
Our team will run through the R&D report with you to ensure that it is factually correct and gives you an opportunity to add anything else to the report that you may wish. Once approved the document will be submitted to HMRC with the company’s corporation tax return by our team of corporation tax specialists.
6 — HMRC approval
When our team submit the R&D claim this is not the end of the process. We will liaise with HMRC until your claim is approved and answer any questions that they may have. Typically, we expect a claim to be processed within 4 weeks from the submission date.
7 — Moving Forward
Our team will start planning your future claims and whether there are any opportunities to maximise this for your company going forward.
Which R&D Tax Relief scheme does my company qualify for? —
There are two R&D Tax Relief schemes. The scheme applicable will depend on whether the business is an SME or a large company.
SME Criteria
- Less than 500 staff;
- Not more than €100m turnover;
- Not more than €86m gross assets.
Large Company Criteria
- 500 staff or more; and either
- More than €100m turnover; or
- More than €86m gross assets.
Most companies will fall under the SME criteria. There will also be instances where a company is transitioning between an SME and large company. Our specialist team of Chartered Tax Advisers will clarify this with clients during our initial meetings.
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