From the very first introduction of R&D tax credits back in 2000, this has been a key service for Harrison North and we have a long and successful history in this specialist field. From those early days onwards we have maintained a level of knowledge and experience in this field that is second to none. There have been many changes over time to the legislation and keeping up-to-date with those changes is critical. However the key advantage we can provide to our clients has remained our ability to prepare claims which encapsulate all areas of R&D expenditure and which are robust enough to satisfy the scrutiny of HMRC. If claims are poorly prepared and submitted year after year, the consequences of an inquiry could prove extremely expensive, hence the importance to get it right first time. The strict conditions regarding qualifying expenditure mean expert knowledge is required to claim the maximum amount permitted under the legislation.
The first step to a successful claim is to establish upfront whether a viable claim exists. This is a case of a phone call often followed up with an email to ask the questions necessary to ensure that we are satisfied the criteria of the scheme have been met. This stage is certainly not intended to deter those who believe they have a valid claim, indeed it is more common to find companies with qualifying expenditure failing to claim. When considering whether to make an R&D claim, the three most important criteria to consider are as follows:
For companies investing in R & D the repayable tax credit is often a vital part of their financial strategy. Other companies may embark upon a one off R & D project for which a claim will improve their cash position either through receipt of a refund or by reduction of corporation tax payable.
The financial incentive to submitting a successful R&D claim can be significant. For those companies able to claim under the SME scheme there is a repayable tax credit of up to £33.35 for every £100 of R&D expenditure incurred. For large companies there is an amount available of £9.72 per £100 of expenditure.
Please contact us for any more information or if you want to discuss the options for pursuing a claim. We are able to provide assistance to companies operating in any industry whether or not a claim has previously been submitted. Harrison North can also, in special circumstances, review and advise on the status of existing claims.