Research and Development
Companies are more aware of Research & Development tax reliefs than they were a few years ago, however there are still a lot of companies not claiming the relief that they could be eligible for, and of those that are claiming many are not claiming as much as they could. Manufacturing & Engineering is probably the sector with the most Research & Development activity in it, but many engineers and technical staff just think what they do is all part of their day job, “just what we do”. They are underselling themselves however, and as a result, companies are still missing out.
An R&D project could be one in which a company seeks to create a new process, material or product which represents a scientific/technological advance, or it could not be new at all, but seeking to make an appreciable improvement to an existing process, product or service through scientific or technological change. Using new materials or construction techniques to improve the technical performance of a product or save time or costs in manufacturing could be examples of an R&D project.
A project needs to be attempting to make a new scientific or technological advance. While it shouldn’t just be a new development for the company but an overall advance, that doesn’t mean that it has to be a world first. If a particular scientific/technological advance has already been made or attempted by a competitor but that information is their own proprietary knowledge, then working to achieve the same can be R&D.
Many companies are reluctant to make an R&D claim because they think it will take up a lot of their staff’s time however that doesn’t need to be the case.
At Moore & Smalley, we aim to minimise the amount of time your staff need to spend on making a claim, to get you the maximum tax saving we can while freeing you up to do what you do best and continue to innovate and develop your business. We also offer a free initial consultation, so if you think you could be doing some R&D give us a call today and one of our R&D tax specialists will come out to see you to see what we can do for you.
If you would like to discuss research and development in more detail or you would like to speak with a member of our team, please contact 01772 821021 to be put in contact with a member of our Tax team.