R&D Tax Credits are a generous government incentive aimed at rewarding innovation. Companies that qualify can get upto 33% back on their investment - so for every £100k spent on doing R&D your business could get back £33k in cash from HMRC. We had supported an established engineering business with their R&D claims having previously not filed any claims as a result of the business not realising the R&D activities undertaken to date - with our support the business was able to reclaim back c.£400k in cash back from HMRC.
The key driver for the group was to implement a methodology that would enable to capture information real-time and therefore bring future claims and their associated benefits forward. Our HMRC approved methodologies are fully transparent so our upskilling of the client’s project managers and finance teams gives our clients the option to take elements or whole R&D process in-house in subsequent periods, should they wish to.
The claimant company wanted to carefully manage their relationship with HMRC due to its attitude to low tax risk. Given the size of the claimant company, this engagement required a series of meetings to get stakeholder buy-in with only a few weeks before the statutory filing deadline. We undertook the claim process for two accounting periods in a single exercise across several of the group entities.
Through this approach and using cutting edge technology we were able to minimise the time investment of the group’s project managers and finance team and identified over £4m of qualifying R&D across generating a cash benefit of over £400k to the client.
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