R&D tax is something that can transform the fortunes of a business. We have helped UK companies for many years to get the most from this government scheme with an average claim being on the tens of thousands of pounds. And here we are to share with you some of the insider tips that have put our clients on the front foot with R&D tax in their business.
Don’t be fooled by the title R&D tax and think that it might not apply to your business. R&D or Research and Development is a broad term that actually includes many areas of business that you wouldn’t necessarily expect be included. And that’s our first insider tip – don’t discount an R&D tax claim before you’ve even begun. R&D tax applies to businesses across the country in all industries. Get in touch with us to discuss what this means and how it can boost your business.
R&D tax applies to manufacturers, engineering companies, food and drink businesses, software companies, business services and many more.
Maximise a claim
Our second tip is to ensure that you include all relevant items with your R&D tax claim. Some might think that you can only make a claim for the materials used in a project. But this would leave thousands upon thousands of pounds unclaimed. The biggest expense for most SME’s is staffing, and if they are part of the R&D project then you can claim back their salary, as well as
- Employers National Insurance contributions
- Employers pension contributions
- Outside contractors used in the project
Add these to a claim and it becomes much larger. You should never under-claim with R&D tax as it leaves you out of pocket.
Don’t focus on one year
The current year’s R&D projects will be fresh in your mind, with team members to ask for details and records to hand. This can be an easy R&D tax claim to submit as it is all fresh in the mind. You can probably pull together some basic details off the top of your head to get the ball rolling.
But it would be a mistake to focus solely on this year. With R&D tax you can look back at the last 2 financial years as well as the current one. This means you can get together a much larger claim for your first one if you haven’t submitted for the last couple of years. This is an insider tip that the best R&D tax claim companies use to bring home the bacon for their clients.
Don’t submit and bury your head
Dealing with the tax man can fill even the bravest business leaders with a degree of dread. The HMRC are often in the news, and not always for the most positive of reasons. But, if you want the best from your R&D tax then you need to be open to communicating with the tax man. They might have questions about your submission or want to know more about your project. If you don’t deal with their enquiries, then you will see a major delay in your claim being paid.
Getting this right can see the cash from your R&D tax claim reaching you in as little as 6 weeks. Getting it wrong can lead to months of being in limbo. Always submit as much information as you can and always be ready to explain as well as stand your ground with the tax man. This is where our most important insider tip comes in…
Look to an expert
Our final insider tip is to find an expert that will help you with your R&D tax instead of you doing all the heavy leg work. As a business owner you have enough on your plate without exploring tax credits. That’s what we are here for. Lumo have a 100% success rate with the HMRC for R&D tax so get in touch with someone who will secure you the cash you need.
At Lumo, we can simplify the process and guide you to make decisions based on your best financial interests. Get in touch with us today and find out how R&D tax can transform your business. We have been helping SME’s across the UK to build their business and drive towards greater success. Now it’s your turn.