R&D Tax Credits
Plastics Injection Moulding
Innovative design and production methods for a vast array of moulded products have enabled this Plastics Moulding company to maintain an unrivalled reputation for excellence in their field. The award of R&D Tax Credits have allowed the company to invest in enhanced tooling capability and so further develop their leading position in a highly competitive marketplace.
R&D work in professional sound systems pays off for company as it sees significant tax credits awarded. In the business of professional sound systems, leading-edge design and meeting the needs of an increasingly demanding customer base are crucial. This company has always had a strong commitment to research and development and innovation – it is this that enables it to compete with overseas competitors. R&D tax credits obtained will help to enable the business to continue to innovate and thrive for at least the next 30 years.
Innovative design and production methods for a vast array of moulded products have enabled the company to maintain an unrivalled reputation for excellence in their field. The award of R&D Tax Credits have allowed the company to invest in enhanced tooling capability and so further develop their leading position in a highly competitive marketplace.
An industry leader in the production of printed displays featuring 3D and moving image effects. These include posters, large format exhibition displays and eye-catching mailer cards which are in great demand by the advertising industry. The award of R&D Tax Credits have allowed the company to develop enhanced software and hardware, enabling it to maintain its pre-eminence in the world of cutting-edge displays.
Innovative manufacturing group achieve annual R&D tax funding. There are 2.5 million CCTV cameras, or around a tenth of the world’s total on everything from cash machines to buses in the UK. The design challenge was of prototyping a targeting device for testing CCTV systems performance, the projects aim was to address resolution, frame rates, distance and lighting issues to allow improvements to the current market technology.
Marine Boat Building
Innovative boat building company receives successful R&D funding. They undertake extensive testing and trials on a regular basis to measure performance, accuracy, build and safety. The company are very much always developing and looking to the next way forward for the marine industry. With the knowledge and expertise which has been developed over of number of years, they are able develop solutions using the latest techniques and technologies available including electronic outboard powered river boats.
Digital Business Services
Innovative 3D visualisation company gains successful R&D funding. A supplier of 3D visualisation services to high end house builders, architects and kitchen and bathroom suppliers, who wish to produce photo realistic 3D visualisations of their future product offerings.
This plastics company has behaved a little like the plastic products it produces, expanding and remoulding itself to suit an ever-changing and expanding marketplace. Initially a chipper and seller of re-granulated plastics, the company moved into design and production of, injection moulded and extruded products, and most recently manufacturing and marketing a range used in the waste treatment industry. Product innovation and research and development is at the heart of the business, so achieving tax credits for this work is a welcome bonus.
Prior to claiming the R&D tax credits the company’s operations and sales were much smaller and loss-making. The availability of the R&D tax credits helped to support the funding of some of the R&D activities which otherwise might have been delayed. The investment in R&D was extremely important to the future growth and development of the company.
At the time, the company was loss-making, and so was able to surrender part of the loss attributable to qualifying R&D, in return for a cash payment. R&D tax credits benefited the company by improving cash-flow and allowing an increase in the amount of research carried out. Additionally, the company are aware that they can claim 100% capital allowances for R&D – based capital expenditure.
Pharmaceuticals and Biotechnology
Tax credits help fund early-stage loss-making biotech companies. The R&D tax credits SME scheme is a good scheme for biotech companies in that it provides cash back, supporting continuing growth in the company. The receipt of additional cash for a cash consuming business is very beneficial.
Not all design meets R&D definition. The area that was most difficult in the claiming process was deciding what qualifies as R&D for taxation purposes and convincing HMRC that the
project was eligible for the tax credit. R&D tax credits are recommended to other SME companies especially as cash-flow is important to the survival of small companies.
High Performance Engineering
The business strategy reflects that the business needs to grow, year on year. Undertaking R&D activities helps to develop the technology into new products using new robust manufacturing procedures. The more R&D done, the more tax relief gained, and the more relief obtained, the less tax paid. The company also claims 100% capital allowances for R&D based capital expenditure. Don’t try and become an expert in accountancy or taxation if you are running your business – get an expert you can trust and rely on.
The company obtained R & D tax relief to cover certain design costs which directly contributed to resolving technological uncertainty of using new materials and processes. There were problems deciding which costs should be classified as R&D as defined under the taxation rules and which costs fall within our normal product development. Using professional advisors helped in developing an understanding of the claiming process.
As an R&D company, depending heavily on non-trading cash flows to enhance product development, the R&D tax credits contribute towards this. It assists the company in recruiting the best available research staff, development of new and innovative products and reduces the timeline from pure research to marketing of products.
Laboratory Analytical Services
R&D tax credits mean the company can compete effectively with much larger overseas organisations. Without the support of the SME R&D tax credits, it would have been economically impossible for the company to make the necessary investment in the continual development of high quality, technologically innovative flow assurance test solutions. Additionally, use Grants when SME R&D tax credit relief cannot be claimed.
R&D tax credit claims are very successful and a great motivation to continue to invest in R&D. At the operational level, the information required to claim the R&D tax credits reinforced the need for robust audit trails and good management information within the company. When the company made a taxable loss they were able to use the R&D tax credit claim to obtain a cash refund for previously paid tax by surrendering the loss.
Obtain good external advice and utilise the tax credit scheme. It is relatively simple and a major benefit to R&D–intensive qualifying companies and well worth the investment of
time to pursue. There is a tangible benefit and it shows to external investors that the company is very commercially–aware.
Three successful years of claims would definitely state that R&D tax credit claims have been successful so far. Engaging an external advisor helped identify all qualifying activity, and smoothed process. Their experience & technological understanding certainly helped identify all the R&D activity. They were able to help tie together the view of what constitutes R&D with the eligible costs associated through each project. The time resource internally was kept to a minimum by involving only those people absolutely necessary to contribute to the claim compilation.
Advanced Surveillance Systems
The company benefited from the R&D tax credits because the reduction of corporation tax payable benefits cash flow and makes it much cheaper to carry out R&D activities. Worth the time, effort required from technical experts as well as finance staff, towards preparing claims.
The R&D tax credit claims have been successful. The company benefited from applying for the R&D tax credits by reducing their tax bill and it has encouraged an internal culture for R&D which does not view R&D as a short-term cost to the organisation but as an investment for the future. Increased R&D would make sector less “vulnerable” to overseas intervention.
The external professional advisors provided guidance in collating all the necessary information. Additionally, the company claim 100% capital allowances for its R&D based capital expenditure. This is often an area that is overlooked by other companies, but it is an important area in managing cash–flow by optimising the temporary differences on R&D fixed assets.
The company benefits from the R&D tax credit scheme as they obtained a cash refund which is good for cash flow and an incentive to invest. One of the lessons the company
learnt was to identify what activities qualified for the claim and being able to determine the eligible costs of R&D activities for taxation purposes.
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