What does HMRC consider Research & Development?
The technical definition to qualify is facing a level of professional uncertainty, demonstrating a systematic approach to overcome the uncertainty, resulting in an advancement of knowledge, process of technology.
In simpler terms, if most people in your field of expertise wouldn't know an immediate 'off the shelf' solution to challenges you're facing with design or on-site, this will likely qualify you as performing R&D.
How is the value of the claim calculated?
The bulk of the claim value is from 'time spent', which is money you're spending on PAYE wages or subcontractor costs. The more money you are spending on people the more money you will get back, but you can also claim for wasted materials and running costs.
If you were building a time machine then 100% of your work would qualify as R&D, so you can claim up to 25% of your total staffing costs. Typically in construction (and it does vary quite a bit), 1-2 days a week can be considered R&D, so you could claim up to 25% on 20-40% of your total staffing costs.
This is something you can do every year like a tax return, but if you've never claimed before you can immediately apply for your past two financial years.
How does it work?
We take care of the full process from start to finish, assigning a Chartered Accountant and a Chartered Engineer to work on your claim. Together they will build a technical report, a narrative, which acts as a justification as to why you are entitled to the money back.
Once the report is complete and you are happy with it, being a true reflection of your business activities, it is submitted to HMRC. HMRC release the funds directly to you within 3-4 months, and we invoice you for our success fee once, and only once, you have been paid.
The process from start to finish can take a few months, but it will only every take 90 minutes of your business time, the rest is on us.
What can we expect from you?
We pride ourselves on our excellent level of service for every single one of our clients. Whether you are a large company with 20 years of experience, or a smaller business set up in the last few years, we are on your side.
How do I get started?
Give us a call on 0117 403 3865
Specialist in Research & Development Tax Relief.
Helping businesses within Construction, Engineering and Manufacturing claim money back from HMRC.
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