More For Our Clients

"Supporting businesses to increase their cashflow"
Lee, OnPoint Manager

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We have teamed up with OnPoint to provide more for our clients. Find out how you can claim back money on your project.
 

What is Research & Development?

Research and Development relief was introduced by the government in 2000 to encourage UK businesses to invest and enhance the fields of Science and Technology. It is a technique to reward businesses across all sectors by allowing them to claim back some of the money they spent on advancing innovations.

Who is it backed by?

Research and Development is a government scheme which aims to support companies that work on innovative projects in science and technology. It can be claimed by a wide range of businesses that do research and development to advance or improve.

Who can make a claim?

Only companies accountable for Corporation Tax (limited companies) can claim Research & Development Tax Credits. R&D Tax relief is a potential source of cash flow allowing you to invest more into your business. Most companies don’t know that what they do may qualify them for R&D tax relief, which can prove to be a valuable source of funding. If you have developed new or improved products or processes, you may be carrying out a qualifying activity. The main test is to look at if your company has been conducting a project that seeks to achieve an advance in science or technology. The advance should be to improve overall knowledge or capability in your industries. It cannot be just an increase in the company’s own capability. It can however include the adaptation of existing knowledge where this adaptation was not readily deducible.

 

What sectors can claim?

Construction

With a predicted worth of £236.8 billion between 2020 and 2024, the Construction industry is larger area of R&D potential. The construction sector can be broken down into a few different categories – these include, private sector housing, infrastructure, industrial and commercial, public sector housing and more. From these categories, there are then endless specialist companies such as builders, fitters, trades, engineers, manufacturers, and other suppliers.

Examples of R&D within Construction include:

  • Investigating and using new materials

  • Developing safer methods and practises

  • Researching energy-saving techniques

  • Overcoming traditional challenges in new ways

  • Creating efficient construction techniques

  • Researching and developing new toolsk

   

Architecture

Innovation in architecture would include utilising and advancing technology such as improving how materials or products perform. Uncertainties could also include development in testing and prototypes or designing bespoke software to use.

Examples of R&D within Architecture include:

  • Research into new building materials

  • Developing new uses for traditional materials

  • Designing and testing prototype materials

  • Creating new software for designing or modelling

  • Unique solutions for design restrictions

  • Developing environment-ally friendly methods
     

These are only examples. The rules of R&D are not rigid, they are put into place to reward and refund those who are dealing with uncertainty. The result of your innovation doesn’t have to be a success either, you can be eligible for a refund even if the project was unsuccessful!

 

Electrical Engineering

What are examples of claimable projects within Electrical Engineering?

 

  • Designing control systems

  • Creating telecom systems

  • Creating innovative fire control systems

  • Researching new uses for materials

  • Developing safer methods and practices
     

These are just a few ideas of what could qualify for R&D; the possibilities are not set-in stone. The project(s) you’re involved in does not have to be successful. You can claim back on anything that involves trying to solve an uncertainty – if you can present proof that the project was going ahead. The money you will claim back will be based on the number of workers you have, the time the project took, and the cost of the actual process. If you are in the sector of Electrical Engineering and have been involved in creating a unique process, resolving an uncertainty, or anything else which you suspect may qualify due to being an innovation, we urge you to get into contact with us so that we can help you with your claim!

 

IT and Software Development

 

Who qualifies for software development R&D tax relief?

Software is continually evolving. Several well-established branches continue to do so (AI, cloud, mobile). New applications for software are developed (e.g., robots, augmented reality, IoT and others yet to come). Any company that is developing software could qualify for research and developments tax credits:

 

  • Software development companies - Typically, a business that has teams of software developers to support other businesses in their software projects.

  • Software houses - May create and iterate software, provide Software as a Service (SaaS), business tools or enterprise resource planning (ERP) systems.

  • Businesses that develop software in-house - Any business that performs a bespoke software development project in-house may qualify for R&D Tax Credits.

  • Manufacturing
     

What projects are claimable within manufacturing?

  • Food, beverage & tobacco products

  • Textiles and textile products

  • Electrical and optical equipment

  • Pulp, paper, and paper products

  • Petroleum products and nuclear fuel

  • Rubber and plastic products

  • Basic metals and fabricated metal products

  • Chemicals, chemical products, and man-made fibres

  • Other machinery and equipment

  • Publishing and printing

  • Wood products

  • Transport equipment

If you aren’t sure if your project qualifies, contact Lee Groves at lee@onpointrandd.co.uk to find out. Lee will schedule a discovery call to identify if your project is eligible, what scheme you should claim under and how much you can expect to receive.