R & D Tax Awards / Innovation
Do you qualify for R&D Tax?
R&D SME Scheme Overview (< 500 Employees/€100M turnover)
R&D Tax awards are designed to reward and encourage innovation, process or production improvements and provide tax relief (against Corporation Tax) or a tax credit cash injection and cover all allowable activities – not just the successful projects.
To obtain R&D tax relief you will need to explain how projects:
- Sought an advancement in science and technology
- Had to overcome technical uncertainty
- Could not be easily resolved by a professional in your field
While this may sound daunting, Pinnacle Savings has developed a fast and easy process, where we handle all the heavy-lifting. In fact, the majority of clients invest less than 5 hours of management time across the whole process, providing an excellent return on investment.
Structured and Simple Process
- Desktop review of client/sector
- Exploratory telephone call to establish viability and identify 2-3 high-level projects (15 minutes)
- 2-3 hours meeting to capture financials/detailed project information for Technical Report
- Submit claim to HMRC
- HMRC settle claim in 4-8 weeks
- Client receives significant cash injection for < 1day’s management time – average first claim £56,000, but Pinnacle Savings supports claims of all sizes
This proven approach ensures that clients receive a significant cash injection for a very focussed 4-5 hours of management time. In addition, Pinnacle Savings highly focussed-approach to analysing supplier data identifies additional R&D activities and optimises the claim size for our clients.
Generally, the challenge for companies is recognising what activities qualify for R&D across process, product, service developments or new working methods, which are often overlooked. It’s about having a detailed understanding of the scheme and how to present the R&D claim in the right way to HMRC. The majority of claims revolve around problem-solving on existing products, processes and systems, not actually inventing new ones. Even if companies have not resolved the challenges, projects can still count, indeed, unsuccessful projects demonstrate to HMRC that, in endeavouring to achieve technological advancement, clients are prepared to take commercial risk.
- Proven processes & very broad experience across a wide range of sectors
- Over £5M recovered and a 100% success rate
- Minimal Client time and resource involvement – generally under 4 hours
- Average first claim £56,000 vs HMRC average £43,000 – 30% higher
- No up-front charges – fees only apply when claim settled
What Expenditure Qualifies?
(A proportion of)
- Staff costs
- Materials or consumables directly connected with R&D processes or prototypes
- External sub-contractor costs connected to R&D
- Specially developed or adapted software
- Utility costs
- Non-capitalised tooling
The total Qualifying costs are enhanced by up to 130%, SMEs can claim circa £2,500-£3,300 for every £10,000 of qualifying spend, depending on the company’s tax position.
Do You Qualify?
If you can answer yes to any of the following, you are likely to be eligible to claim R&D tax:
- Have you created, developed or introduced new or improved products, processes, systems or services to achieve efficiency improvements, increased outputs, reduce wastage or to comply with new legislation or regulations?
- Have you applied innovation, creating bespoke new products, systems or processes for your clients?
- Have you modified existing products or services to provide tangible benefits, eg, enhanced durability or improved safety?
- Do you regularly face technical challenges and uncertainties?
- Do you routinely seek to seek new and improved ways of doing things?
- Do you frequently test and measure? (not market research)
- Have you undertaken the above activities on (so far) unsuccessful projects?
Pinnacle Savings’ Innovation team helps clients develop an innovation strategy, focus on the optimum NPD and market opportunities, facilitate innovation workshops, identify potential collaboration partners and have enabled mini-projects through our links with Universities.