IS IT TIME FOR YOUR R&D REALITY CHEQUE?

Transcription

1 IS IT TIME FOR YOUR R&D REALITY CHEQUE? RANDD UK S SIMPLE GUIDE TO REWARDING INNOVATION THROUGH R&D TAX CREDITS.

2 WHAT ARE R&D TAX CREDITS? The R&D Tax Credit Scheme is all about rewarding innovation R&D Tax Credits are essentially cash awards for businesses who undergo work to innovate in any sector. The R&D Tax Relief Scheme was introduced by the government in 2000 as a specific tax incentive to encourage UK companies to invest in research and development (R&D), allowing innovation to grow within the UK. Equivalent to up to a third 1 of qualifying expenditure, R&D Tax Credits are paid out by HMRC against what are defined under the scheme as eligible R&D investments activities, and go direct into your company bank account with no strings attached on how the money can be spent. This may all seem a bit technical and complicated but the important message for you is that your business could receive a significant cash benefit (our average claim for clients is over 50,000) if you have carried out any activities regarded as R&D under the scheme. As we explain in this brochure, the definition is much broader than most businesses realise and the process for claiming can be made straightforward, quick and hassle free. Best of all if you ask randd uk to help you with your claim you will not need to pay any fees or take any financial risk because we only take an agreed percentage from a successful claim. The scheme is open to SME s (Small and Medium Sized Enterprises) and Large Companies as defined by size, turnover and balance sheet value. SME s are defined as having fewer than 500 employees and either an annual turnover not exceeding 84 million, or a balance sheet not exceeding 72 million Companies exceeding that SME threshold are considered Large Companies but can still claim R&D under the REDC scheme. This attracts an 11% Tax Credit BUSINESS INNOVATION DOESN T GET THE CREDIT IT DESERVES, DOES YOURS? I am busy recommending their services to friends, customers, suppliers, basically, anyone who will listen. So please, listen. Do it. Thanks for providing me with a Little Victory. Jamie Bristoll Process Heating Services Ltd 2

3 FROM REALITY CHECK TO REALITY CHEQUE What is a Reality check? A reality check is an occasion that causes you to consider the facts about a situation and change previous opinions, ideas, or beliefs. You might also think of this as a light bulb moment. A randd uk Reality Check is the point in our conversation with a new client when they suddenly realise that they do indeed have the basis of successful R&D Tax Credit (in spite of their initial scepticism) and that this is likely to lead to them receiving a large cash payment from HMRC in the near future. Then it really does become a Reality Cheque. We find that nearly every engagement there s almost always this one key moment. It typically comes after we ve been discussing a product, system or process they have spent money developing, improving or testing which much to their real surprise and delight, we believe could be the basis for a claim. EVERY BUSINESS MUST BE CLAIMING THEN RIGHT? NO! SHOCKINGLY ONLY A SMALL PROPORTION OF ELIGIBLE BUSINESSES HAVE EVER CLAIMED. So why are so many businesses missing out, and are you one of them? A majority still remain largely unaware of the scheme Of those who are aware, many assume it won t apply to their business, not recognising their own activities as qualifying R&D or innovation Yet more don t claim because their accountants haven t identified their eligibility because of limited specific R&D Tax Credit knowledge or experience of dealing directly with HMRC. IS IT TIME FOR YOUR OWN REALITY CHEQUE? 3

4 LOOKING FOR THE CATCH? DON T WORRY THERE ISN T ONE The biggest challenge isn t in claiming, it s recognising eligibility in the first place. It s about having the detailed understanding and experience of the scheme to know which activities will qualify and how to present these in the right way. As this is all randd uk have been doing since 2008 we believe we have become quite good at this, and more importantly the many customers who have benefited from this expertise seem to agree. If you can answer yes to any of the following, you may be eligible: Have you created,developed or introduced new or improved products (or modified existing ones), processes, systems or services to acheive efficiency improvements, increased outputs, reduce wastage or to comply with new legislation or regulations? Have you applied innovation creating bespoke new products, systems or processes for your clients? It doesn t need to have been successful to be eligible The activities undertaken don t need to have worked as desired or anticipated. Eligibility is determined around the qualifying development activity, not the outcome of the project. Want even more good news? R&D Tax Relief can be claimed on expenditure which is up to 3 years old (depending on when your accounting year falls). DON T JUST THINK R&D. THINK INNOVATION 4

5 THINK YOU HAVEN T DONE OR DON T DO R&D? THINK AGAIN Don t just think R&D, think innovation. In principle to qualify, you just need to be able to show that your business has undertaken a project or activity where an immediate solution wasn t readily available, or that you ve taken a risk, done trials or tests aimed at a technical or commercial breakthrough. What costs can potentially be claimed for? Qualifying criteria in simple terms are: There has to be a scientific or technological advance overcoming existing uncertainties Project aims must be about finding improvements or solutions so that new things can be done, existing things can be done more efficiently or effectively, or to meet new legislation requirements Any advancement or breakthrough sought should be through an advance in science or technology not currently achievable or available IT PAYS TO KNOW THE FACTS Thank you Phil - you and your team have been very helpful as always and have made the process as simple as possible. Much appreciated and here s to the next one! Helen Goodwin, Director Consort Displays (Leicester) Ltd 5 A proportion of the costs for employees involved in costs of R&D activity related staff (including salaries) and costs of associated external freelancers/sub-contractors Consumables/materials and utility costs directly connected with the process or processes Any specially commissioned materials, parts, processes or systems Specifically developed, commissioned or adapted software An appropriate level of variable light & heat costs

6 6 SIMPLE STEPS TO YOUR REALITY CHEQUE Consultation A brief no obligation initial consultation for us to understand and get to know your company, ideally face-to face but over the phone if you prefer. You ll also get to know us and this ensures you re happy with the process outlined and happy to move forward. Kicking things off We re proud of our 100% success rate, so if we re here, it s a good sign we re confident we can secure your Reality Cheque. When we get the go-ahead from you we start putting together your claim. It is important for you to remember that we don t charge you any fees for doing this so you don t have any costs to worry about. We will only deduct the percentage fee we have agreed with you from any successful claim. Completion and submission Putting together your claim is what we do best. Over the years we have become experts in the technical uncertainty surrounding your activities which is key to gaining approval from HMRC for your claim. We complete the necessary the technical report, financial schedules and forms, then submit your R&D Tax Credit claim to HMRC. The great news is they aim to process all applications within 30 days of submission. Facilitation Our longstanding and successful direct working relationship with HMRC allows for any dialogue to be efficient, and we ll be their main contact so you ve no need to worry, and we deal with any questions to ensure they re satisfied and the claim is successful. Building the case We ll interview key staff and gather all the important information needed to write the main body of the report, and create the financial plan stating your case to HMRC. For clarity and expediency, we use a bespoke template which makes it hasslefree for you as we extract all the necessary financial data. Typically this can be done within 2-4 hours. It really is Reality Cheque time! A successful claim and you get the cash, to use as you wish. This is also the ideal time for us to liaise with you to collate any additional information in support of future claims to be made in subsequent years. As long as your future innovation investments qualify, you can claim year after year. WE MAKE CLAIMING SIMPLE, HASSLE FREE AND QUICK 6

7 WE FOCUS ON WHAT MAKES YOUR BUSINESS TICK, NOT TICKING BOXES We specialise solely in securing R&D Tax Credits and to date we ve claimed back over 65million for our clients (over 1,000+ and rising daily) with an average 1st claim of over 55,000. Not only do we work diligently to optimise your claim, we minimise your time required and you won t have to deal with HMRC because we take care of that on your behalf. Making a claim really isn t just a numbers exercise and our 100% success rate is because we know in detail how the scheme works, how HMRC interpret what s eligible, and the precise way HMRC expect submissions to be presented. The randd uk advantage R&D Tax Credits aren t straightforward unless you have specialist knowledge and experience in this specific tax area, and we do. What truly differentiates randd uk are our highly experienced consultants who have an unrivalled breadth and depth of senior level experience covering wide ranging industry sectors. This gives them expertise to identify what claimants themselves may not recognise as eligible, and in many cases, what other R&D specialist consultancies or accountants won t see or even be looking for. We regularly refer our clients to randd uk and have no hesitation in doing so, knowing they take the time to understand our clients organisations, and provide them with expert advice in relation to R&D Tax Credits. All of the clients we ve referred, have been successful in securing credits as a result of working with randd uk. Yvonne Jackson, Partner Clayton & Brewill Chartered Accountants Nottingham. WE KNOW TIME IS MONEY, AND CAN HELP YOU SAVE BOTH 7

8 DON T LET A MYTH PREVENT YOU FROM CLAIMING Myth: It all sounds just too good to be true. Reality Cheque: We understand that but it really isn t. No catches, no hidden costs, no hidden agenda. It s simply a government backed tax incentive to encourage and reward innovation, which underpins the growth in the UK economy, especially through SME s. Myth: Claiming will take up a lot of time and be disrupting to the business Reality Cheque: Absolutely not on both counts. Typically we only need one meeting with key people, and after that most of the work we do at our office with very minimal involvement required other than maybe clarifying a few points. Minimum hassle, maximum return. Myth: The R&D we did didn t work anyway, so we don t qualify. Reality Cheque: It doesn t have succeed to potentially qualify, innovation is all about trial and error after all. As long as the scientific or technological uncertainty can be shown, you can still claim. Myth: We don t have an R&D budget or department so won t qualify Reality Cheque: You don t need people wearing white lab coats to be involved in R&D, nor a defined R&D budget. Innovation is simply about find new and improved ways to do things, and that s all we need to identify your potential eligibility and activities for a claim. Myth: It s only for companies inventing something new and we don t do that. Reality Cheque: Not the case at all, in fact the majority of claims revolve around problem solving around existing products, processes and systems, not inventing new ones. Myth: If we make a claim HMRC will want to discuss all our tax affairs and we don t want that. Reality Cheque: R&D claims go through specialist R&D HMRC department. The report we submit relates only to matters specific to the claim so there s no risk of this whatsoever. Myth: You can only claim for your current financial year. Reality Cheque: You can make a retrospective claim up to 2 years from your current financial year end, which means you don t need to miss out claiming on that work previously. Myth: I employ an accountancy firm and they d have told me if I was eligible for R&D Tax Credits. Reality Cheque: Possibly, but not definitely or necessarily. Whilst some of the larger accountancy firms may have people who understand this tax area, the majority may not. Even those that do are unlikely to be doing this every day, be drawing from experience of working in business so know what sort of things to be actively looking for, or deal direct with the HMRC in the way randd uk do. IN REALITY, IS THERE ANYTHING STOPPING YOU FROM CLAIMING? 8

9 WHAT BUSINESS SECTORS QUALIFY FOR THE R&D TAX CREDIT SCHEME? This is one of the key benefits of the scheme. It doesn t matter what sector you are in because the criteria for making a successful claim is based on the activity your business has undertaken, not the business sector you re in. It s really important that you don t dismiss any activity which you think might not qualify because it is not on the example list above. Don t make that assumption. So what activities qualify? It s difficult to provide a definitive list because we know from our experience that businesses are very innovative and regularly come up with new ways of doing things which are difficult to classify, but which have nevertheless formed the basis of many a successful claim. But just to give you some idea here are some of the more typical activities which might be eligible: A new product An enhancement to an existing product A change to a process which:- Improves production efficiency Reduces waste Reduces energy useage Reduces carbon emissions Improves recycling Improves safety or safety performance Enhances durability or longevity Testing of a new product or process (but not market research) Prototyping Development of a new material Use of new materials in the production process New use of an existing raw material Too many companies are missing out because they have been given misleading information about the scheme. If you are in any doubt, contact us and we will be able to let you know very quickly whether you might have the basis for a successful claim. DON T MISS OUT JUST BY BEING IN DOUBT! 9

10 REALITY CHEQUE MOMENTS WE D LIKE TO SHARE Below are a few examples of very satisfied clients Reality Cheque experiences (you can read full case studies on our website) which highlight just sone of the benefits randd uk deliver. The powers that be make stuff like this deliberately complicated, in order to put people off reclaiming their own money. However, this was such a simple process with randd uk, even an eejit like me managed it. Sure, they take a small cut, but that leaves you with a big cut, of your own money, reclaimed from the taxman, which makes it taste all the sweeter. I am busy recommending their services to friends, customers, suppliers, basically, anyone who will listen. So please, listen. Do it. Thanks for providing me with a Little Victory. Jamie Bristoll Process Heating Services Ltd randd worked with Monad Solution to understand more than just our accounts they looked at our business processes too. By understanding these processes randd included more of the softer elements of research and design within our application, such as investigation and analysis work, which increased the amount of money we received. randd provided better value for money and reduced my time taken away from the business. Luke Studley, Chief Technology Officer Monad Solutions randd uk s team have again helped us with another successful R&D claim. The professional, controlled and well communicated approach by randd uk is a really good fit for our business. I would strongly recommend randd uk as the company to handle your R&D tax credit claim. Mark Brady, MD Hayley 247 Engineering Services Ltd. I would like to thank the randd uk team for assisting ANT with our R&D tax claim. This is an excellent result and will help secure the future of business in the highly skilled aerospace sector, where R&D is paramount to our success. Shaun Rowley, Managing Director ANT Industries The service provided by randd UK exceeded our expectations. From the front end meetings to the backroom support in putting together our claim they were most professional. It was the easiest money we ve ever made! Karl Evans, Managing Director DMS Nuclear COULD YOUR CLAIM BE NEXT? 10

11 PAYMENT ON SUCCESS At randd uk, we work on a no-obligation, and contingency basis only so there s absolutely no risk to you or any up-front financial commitment. We don t charge for: any up-front costs expenses of any kind accountancy or administration fees Once we ve submitted your claim, it typically takes about 6 weeks for HMRC to pay the approved cash award (The Reality Cheque ). In the highly unlikely event of an unsuccessful claim, (it s worth re-mentioning our 100% success rate, a proud track record we intend to keep) you wouldn t be charged a penny. SHOULDN T RANDD UK BE REWARDING YOUR INNOVATION? 11

12 CHOOSING RANDD UK REALLY WILL PAY DIVIDENDS Our no-nonsense approach means we find it only takes a straightforward chat of about an hour to totally dispel any misconceptions or concerns, and identify eligibility and a potential cash claim. We re sure you ll agree that s a great return on a small time investment, especially given our claim success rate is 100% and the average 1st claim value with our new clients is over 55,000. Since meeting the team at randd uk, we ve successfully introduced several clients. Their consultants work hard to understand the clients business and make claims often well in excess of the amounts we d be able to due to their ability to forge good client relationships and their very specialist knowledge of the legislation Mark Lane, Partner Lane Monnington Welton Chartered Accountants Basingstoke CHEQUE OUT RANDD UK TODAY FOLLOW US T: E: reality@randd uk.com W: uk.com Judge s Court, The Old Courthouse, St Peter s Churchyard, Derby, DE1 uk /randd uk randd-uk-ltd +Randd uk ww.randduk.com Winner: Finest R&D Consultant Services 2016: European Business Awards - CV Magazine Voted Best R&D Consultancy Services - UK: Wealth & Finance International s 2015 Finance Awards