There are five main categories:
Yes, the scheme is complex. However, at MSC Associates we aim to make the process as simple as possible for you by doing all the difficult things ourselves.
We’ll prepare the claim for you and set up a simple system for you to record the costs for future claims. We’ve helped many businesses to claim back significant sums where they previously believed they did not qualify.
The UK Government has a surprisingly wide definition of R&D for tax purposes. It covers: ‘activities that overcome uncertainties’, aimed at achieving a technological advancement. An advance in technology does not necessarily mean ground-breaking, innovative or novel. If you have made something cheaper, faster, smaller, larger or longer, then it could count as R&D. Similarly, if you have duplicated a product, process or service and improved it by doing so then this could also be eligible.
R&D Tax Relief can either take the form of significant cash back or a reduction in a company's tax liability. It is even possible to claim both an R&D grant and R&D Tax Relief on the same expenditure.
The amount you can claim depends on a couple of things, including:
Claims are submitted to Her Majesty’s Revenue and Customs (HMRC)’s regional R&D Tax Relief units. They must include the correct calculations to substantiate the claim and documentary evidence that meets the HMRC requirements for Research & Development.
Claims need to be made within the HMRC time limits (two years from the end of your financial year) and MSC submit a claim that is comprehensive thereby ensuring that you get all that you are entitled to.
Compiling the claim can be complex and although HMRC has produced a long manual to assist companies in making a claim themselves, many use R&D tax specialists such as MSC Associates.