Often we receive questions from our clients about our process and the intricacies of Research & Development. It is always part of our mission to guide you through the process with ease and inform yourself along each step, so you are always in the know.
We possess a vast wealth of knowledge on research and development tax relief at Shencoh. Our specialised team consists of research & cost analysts, chartered accountants and solicitors, all who work hard and fast to process your lucrative claims.
Below you can find all the essential details about the R&D initiative. Please read on for all you need to know about the powers this HMRC tax scheme can afford you.
1. Who are Shencoh?
We are experienced R&D tax specialists. We use our unique combination of skills and knowledge of the Research & Development tax credit scheme, following HM Revenue & Customs guidelines, with thorough technical experience and an eager interest in science and technology. This dictates that we only ensure the highest of quality and robust claims for our valued clients who we have helped to secure millions of pounds in tax credits and corporation tax savings.
We are always delighted to discuss whether you might qualify for Research & Development tax relief and answer your questions.
2. What is R&D?
Research and Development (R&D) tax credits are UK Government incentives designed to encourage investment in innovation by companies that operate in the UK. Eligible companies can receive a cash payment or a substantial reduction in corporation tax for carrying out qualifying activity.
3. What will it cost?
Our fee structure is all success-based, so we only charge a fee when we can generate a cash payment or corporation tax saving. So you are not asked for anything until HMRC accepts your claim. If an application is, in the unlikely event, not successful, then we don’t charge a fee, therefor, for you, its a no risk benefactor to work with us. However, here at Shencoh, we are very proud of our 100% success rate and we are confident in our abilities to always to deliver the best results.
4. What are the benefits?
You will be interested to know that both profit-making and loss-making companies can benefit from R&D tax relief schemes.
Any profit-making SME can receive a reduction in their tax liability. Equaling up to 33p for each £1 they spend on R&D activities. (based on a 20% corporation tax rate).
Loss-making SME’s can surrender their losses for a cash credit directly from HMRC for a part of what they spend on R&D activities.
5. Who can qualify for R&D?
To qualify, you must be actively seeking to achieve an advance in the fields of either science or technology. However, demonstrating such advancement is often challenging to quantify, yet it can include broad ranges of activities, including the development of software products, perfecting recipes to extend shelf life or overcoming desire or engineering challenges.
If you are or have been developing new or modifying existing products, processes or services, and there is reasonable uncertainty surrounding the outcome of it, then it is a promising sign of R&D tax relief.
6. Shencoh’s client journey:
The process of our claims has been designed to be a complete end-to-end service which removes the burden of making and processing the claim yourself.
Our usual time frame for completing tax relief claims, from start to finish, is four to eight weeks from your initial call right through to when the money is in your account.
7. How far back can I claim R&D tax credits?
The research and development (R&D), tax credit claim limit, is two full financial years, from the end of your accounting period. Before this end, you must submit a claim for any expenditure that you have been able to identify during that time.
8. What expenditure is allowable?
You can claim relief on these three key areas:
- Staff costs.
- Consumable items (heating, lighting, power and materials).
- Freelancer or subcontractor costs.
9. It all sounds too good to be true?!
Many of our clients are skeptical at first, but every claim we have submitted has been successful and collectively our clients have received millions of pounds of tax credits and corporation tax savings.