Making claims for tax credits from HMRC
According to HMRC’s report, “the ‘Manufacturing’, ‘Professional, Scientific and Technical’, and Information and Communication sectors continued to have the greatest volume of claims for tax credits from HMRC, making up a total of 71% of claims and 75% of the total amount claimed in any tax year.”
“Mark Tighe, CEO of Tax Relief Specialists for Catax, pointed out that the “Government is aware that Britain has a global reputation for innovation and so is actively trying to encourage firms of all sizes to invest in R&D.”
Caroline Hunt, Director at National Audit, Tax, Advisory and Risk Firm for Crowe UK, said: “Given that the majority of those companies using R&D tax credits are small and medium-sized enterprises (SMEs), the uptake in the relief used could encourage many innovative businesses to grow and expand and reach their full potential.”
For 2016-17, 39,960 R&D tax credit claims were made. 34,060 of these are in the SME R&D scheme, and yet there are still more claims to come as submissions remain open.” (Accountancy Age, 2018)
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Manufacturing and engineering projects can qualify for R&D tax credits
Typically those product and engineering or manufacturing process development projects that may qualify for research and development (R&D) tax relief include the following items:
- Innovative product development using computer aided design tools;
- Development of second generation or improved products;
- Tooling and equipment fixture design and development;
- Development of unique computer numerical control programmes;
- Design of innovative programmable logic controllers;
- Design of innovative manufacturing equipment;
- Prototype development and three-dimensional solid modelling;
- Development of computer models;
- Design and development of cost-effective and innovative operational processes;
- Integration of new materials to improve product performance and manufacturing processes;
- Evaluation and determination of the most efficient flow of material;
- Design and evaluation of process alternatives;
- Design, construction, and testing of product prototypes;
- Increase in ease of operation or suitability of manufactured products;
- Development of processes that would meet new or changed regulatory requirements; or,
- Streamlining of manufacturing processes through automation.
Engineering and manufacturing projects
There’s tax credit available for those UK businesses which develop or improve products, software or processes for themselves or their clients. If you have a limited company based in the UK and provide customers with bespoke solutions or develop products, software or technology, you could benefit from the scheme. Working with your accountants, Amolo Group advisors turn your ideas, solutions and projects into a tax credit or cash by identifying, defining and describing qualifying costs and activities within your business. This credit is an incredibly valuable source of funding, allowing you to reinvest in your business and continue doing what you do best. Whether you are making a loss or a profit, you can still make a claim. We guarantee to work for any client, regardless of fee.
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A Government Backed Scheme
R&D Tax Credits are backed by the government and designed to support businesses that invest in scientific or technological advances.