CTR Can Help You With Research and Development Tax Rebate
R&D tax credits can be a valuable form of financial support for many businesses across the UK, whilst also helping businesses across all sectors develop some of the world’s leading products, processes, and services and are a government incentive aimed at rewarding UK companies for investing in innovation.
Information About R&D
Research and Developments (R&D) tax credits are a government incentive aimed at rewarding UK companies for investing in innovation.
Work that advances overall knowledge or capability in a field of science or technology. Projects and activities that help resolve scientific or technological uncertainties, may qualify for R&D relief.
Research and development is the process by which a company works to obtain new knowledge that it might use to create new technology, products, services, or systems that is will either use or sell. The goal most often is to add to the company’s bottom line. Many people think of ‘white collar’ companies when they hear R&D, but ‘brown collar’ companies also qualify.
For example, a food company who come up with improved food formulations to extend product shelf life, or the manufacturing company design some new tooling. It takes place in companies of all sizes.
Any business that creates and sells a product or service, whether it’s software or spark plugs, invests in some level of R&D.
The accepted definition of this is: Scientific or technological uncertainty exists when knowledge of whether something is scientifically possible or technically feasible, or how to achieve it in practice, isn’t readily available or deducible by a competent professional working in the field.
- Staff, including salaries, employer’s NIC, pension contributions
- Subcontractors and freelancers
- Materials and consumables including heat, light and power and prototypes
- Some types of software
- Payments to subjects of clinical trials
Architects, health (pharmaceutical & medical), construction, education, science, technology, energy, agricultural, manufacturing, telecommunications, automotive manufacturing, software & technology, waste management, mechanical engineering, brewing industry, product engineering industry, electrical contracting industry, furniture & cabinet manufacturing industry, food & consumer packaged goods industry, steel industry to name but a few. Call us to find out if your industry/business is undertaking eligible R&D.
- You must be a limited company.
- You must be registered to pay corporation tax in the UK
- You must not be in administration or liquidation
- You must be undertaking R&D activities which cost money
In the last two years, have you?
- Developed new products?
- Modified or adapted existing products?
- Made improvements to your manufacturing processes?
- Developed or improved software?
- Have legislative changes led to you having to change the structure of your products?
By keeping the process as smooth as possible and working around your business commitments.
- We will have an initial call to confirm eligibility and then arrange to have either a meeting in person or a Zoom to fully discuss your business and go through some questions with you.
- We work closely with you, your accountants, and any specialists to collect all documentation, evidence and figures needed to prepare the claim.
- We use the information we have collected, with you to prepare draft report.
- Once you are happy, your report will then be finalised and sent to HMRC. CTR will liaise directly with HMRC on your behalf always keeping you up to date with progress.
Enhanced R&D Using The CTR Process
For those businesses that have made an R&D claim during the previous 24 months, with another company, there is an opportunity to re-open and enhance that claim. Most businesses that make an R&D claim are in a position of profit; however, as a result of the CTR process some businesses may find the reverse to be true and this could lead to an enhanced R&D claim.