Is your company involved in any type of innovation? Do you design new products or have them designed for you? Perhaps you are developing an ‘App’? Or developing a new manufacturing process?

If so, you could be able to make a Research and Development tax credit claim which could save you a lot of tax. A research and development claim works by increasing the tax relief of the expenses you incur, eg. if you spend £100 on R&D in 2011 you are able to get tax relief of £200! If you are paying tax at the small companies rates the additional saving is at 20% Therefore if you are spending £100k per annum on Research and Development you could benefit from an additional £20,000 in cash through reduced corporation tax. If your profits are in excess of £300k the saving increases to 27.5% in many cases.

Making losses? Even then you can benefit, the tax credits can be exchanged for cash with HMRC.

What do you do that might qualify for the R&D Tax Credit scheme?

• Are you involved in innovating, improving, developing or integrating systems?
• Do your designs involve specifically engineered components, or software?
• Do you have IP Protection on any of your products, services or processes?
• Do you have product improvement programs?
• Have you developed new, improved production techniques?
• Do you have products designed but never launched?
• Do you do bespoke customer focused work?
• Do you co-operate in development with supply chain and key suppliers?

Even if you can’t fit any of your activities into the above, give us a call and ask us, we have a specialist R&D team and we operate on a no-win, no-fee basis, so you have nothing to lose and HMRC are expecting people to make R&D claims!