R&D tax credits
R&D tax credits help businesses to offset the cost of their research and development activities, reducing the amount of corporation tax they pay. Clayton & Brewill can help you to make a successful claim for this valuable R&D tax relief.
The government introduced R&D tax credits to reward companies that innovate; recognising that achieving a competitive advantage is an expensive business. The credits can be claimed against employee costs, staff provider costs, physical materials, software, and some utilities costs.
Clayton & Brewill can help you to make a R&D tax credit claim as part of the corporation tax return – either at the time of the return or as an amended return.
HMRC allows claims to be made up to two years after the end of a corporation tax period.
Are we eligible for R&D tax credits?
If you can demonstrate that you are investing in developing new products and processes or enhancing existing ones then you are likely to be eligible for R&D tax credits. Our R&D tax credit specialists in Nottingham can talk through your situation and help establish your eligibility.
How much will it cost to apply for R&D tax credits?
Many advisers charge on a percentage basis for R&D tax credits – sometimes as much as 25% of the amount reimbursed, which can be quite a significant sum when the claim is large. At Clayton & Brewill we charge for R&D tax credit claims on a time-only basis, making it a much more affordable option. By way of example, for one of our clients, a successful claim for £19,000 of R&D tax credits cost less than £1,400 – a very worthwhile investment!
For more information on making a claim for R&D tax credits contact Clayton & Brewill on 0115 950 3044 or click here to email us.
Case study: sparking a £50,000 tax credit boost
Clayton & Brewill helped Heanor-based DB Brooks Electrical Engineers to secure £50,000 in R&D tax credits for ‘day-to-day’ innovation.
Established in 1974, DB Brooks has evolved from working mainly in the animal feeds, flour milling, and grain handling sectors to become a fast-growing and innovative electrical engineering provider on a wide range of electrical engineering projects.
Clayton & Brewill’s Doug Perry explains:
“When we started working as accountants to the team at DB Brooks it was clear that there was significant process improvement and day-to-day innovation sat within their core business activities.
“The team’s approach is very much bespoke, with its electrical engineers finding the right solution for each individual client. It seemed a perfect opportunity to apply for R&D tax credits, so we worked through the numbers and made applications to HMRC for the two most recent financial years at the time.
“Within less than three months, DB Brooks had received £25,000 for each of the two years in question – a great example of how ‘day-to-day’ process improvements can be eligible for R&D tax credits.”
If you think you might be eligible for R&D tax relief or would welcome a conversation about how to apply, please get in touch with us at Clayton & Brewill. You can call us on 0115 950 3044 or click here to email us.
DB Brooks Limited
R&D tax credits had been mentioned to us before but never progressed. With Doug Perry’s help it was a pretty straightforward process and we can now use the extra cash to help with our ongoing growth and development at DB Brooks. I’d encourage other businesses to investigate claiming R&D tax credits – it’s been a real boost to our bottom line.
Darren Brooks, DB Brooks