MADE Cymru ensures learners don’t miss out on R&D tax relief

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MADE Cymru has incorporated sessions on R&D tax relief to our finance modules for the Upskilling for Industry 4.0 course to ensure that the organisations we work with are fully aware of this legislation. Dr Simon Ball who works for RandD Tax, has been invited to Friday’s class to talk about this.

Simon Ball says, “We’ve helped 1,500 businesses claim over £195 million in benefits since 2012, R&D Tax Credits or R&D Tax Relief enable companies to either reclaim tax paid, reduce tax paid, or in the case of loss-making companies to surrender losses for tax credits. On a simple level they bring a cash injection for R&D work already done. Not claiming them means hidden value in your business might not be recognised. A claim can be made anywhere there is innovation – it is worth checking if you could make a claim. Please get in touch for a FREE assessment for further details.”

What is R&D tax relief?

It’s a financial benefit that contributes to the economic boost that collaborative R&D can bring to a business. The estimated total amount of R&D tax relief support claimed for the year ending March 2020 is £7.4 billion, an increase of 19% from the previous year (source).

Who is R&D tax relief for?

Organisations that spend money developing new products, processes, or services – or even evolving existing ones, are eligible for R&D tax relief. In a nutshell, if you are investing in your innovation, you can make an R&D tax credit claim to receive either a cash payment and/or Corporation Tax reduction.

What you need to know

The main challenge to claiming R&D tax relief or credits is understanding the HMRC guidelines and how these can be applied to manufacturing (or any other sector) and also depend on what area the R&D slots into e.g. technology or science. Organisations tend to apply their own definitions of R&D, and these can often differ from the HMRC guidelines. The guidelines can help organisations establish what R&D work can be claimed and how to gather the qualifying costs but there is often confusion about specific details – hence why many organisations miss out on the full benefits they are entitled to.

MADE Cymru is currently enrolling new students for the Innovation Management and Upskilling for Industry 4.0 short courses. Live, online and industry-friendly, these are fully funded by the European Social Fund via Welsh Government. Delivered and certified by University of Wales Trinity Saint David. Please contact us on 01792 481199 or [email protected] to find out more. Or complete the contact form below.

MADE Cymru is funded by the European Social Fund through the Welsh Government. Delivered by University of Wales Trinity Saint David.