R&D Tax Credits – from zero to over £52,000 in five weeks
A London based IT company recently approached us looking to change their accountants. Within minutes of getting to know what our potential client does – developing technology for online video streaming on the internet – we suggested they should make an R&D tax credit claim.
The client was initially reluctant to consider making a claim for the work they have undertaken in the last couple of years. We later discovered the lack of enthusiasm stemmed from poor advice from their previous advisers which led to them to believe they stood little chance of making a successful R&D tax credit claim.
As our first meeting with the client was less than a week from the filing deadline it was important to move quickly or lose a substantial claim. Fortunately, the specialist R&D team at WSM are available with the understanding of the detailed reporting requirements for a successful R&D claim. The WSM team worked with the client to prepare a technical submission to HMRC setting out the basis of their claim.
It is one thing to compile a successful technical submission to HMRC and quite another to get the most out of a claim by identifying all the eligible R&D activities and qualifying expenditures. We understand the importance of both and our R&D specialists helped determine all the costs to include in the tax credit claim. In addition the team also help clients to get the best possible outcomes by more effective organisation of their management and reporting systems.
This client was delighted not only with the way in which WSM worked with them to produce their R&D tax credit claim at very short notice but also, not surprisingly, with the outcome which saw over £52,000 of tax savings within five weeks of our first meeting!
The truth is that many SMEs involved in new cutting edge technology are not aware of the R&D tax credit scheme and the ones that are aware do not believe they have what it takes to make a successful claim. Recent reports suggest that over £4bn of expenditure on research and development each year is unclaimed under the R&D tax scheme – that is up to £1bn of R&D tax cash back remaining unclaimed each year!
For further details contact Bruno Obasi, corporate director.