Did you know that many businesses who submit a research and development (R&D) tax credit claim, receive more than £50,000 a year in the form of a cash repayment and/or corporation tax reduction? That represents an incredible boost for any company – and one that many of your clients may be missing out on.
It is important to keep an open mind when it comes to R&D tax credits as R&D activity is often found in the most unlikely of places!
For instance, PfP Limited recently assisted a client who trades as a wine broker and who had created their own software programme to help their business run more smoothly, and another of their clients is an ex-midwife involved in education and training who created a midwifery stool. They have both subsequently benefitted from a successful R&D tax credit claim and received a vital financial boost to their business.
The R&D claim guidelines set out by the government are deliberately broad and state that 'any business taking a risk by innovating, improving or developing a process, product or service is engaged in R&D activity'. Although intended to be helpful, this broad criteria can make it even more difficult to identify the clients you should be talking to. Here are a few pointers that might help you:
You really have nothing to lose by suggesting R&D tax credits to your clients – and they have everything to gain. It is a subject that is getting more attention, so if you do not talk to your clients about R&D tax credits, there is every chance that someone else will.
ICAEW (South Wales) is hosting a CPD seminar specifically for accountants on Thursday 7 September in 2 different locations of Cardiff and Carmarthen.
To find out more about what makes an eligible R&D tax credit claim and have the opportunity to discuss your clients’ potential claims with a UK leading expert in R&D, click here.