Tax relief boost to businesses who undertake R&D

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Many of the businesses we work with are not aware that they can claim tax relief or tax credits on their R&D work. It’s a financial benefit that contributes to the economic boost that collaborative R&D can bring to a business. £5.3 billion was claimed in 2018-2019, of which 24% came from the manufacturing sector. Since the tax relief was started in 2000, £33.3 billion has been claimed (source). These are considerable amounts that can make R&D work more of an attractive proposition.

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 organisatons 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 has incorporated a new session to our finance module for Upskilling for Industry 4.0 course to ensure that the organisations we work with are fully aware of this legislation.

We spoke to Dr Simon Ball who works for RandDTax, a company who has helped 1,300 businesses claim over £150 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.”

Lisa Lucas, MADE Cymru said, “By taking part in our Advanced Design Engineering programme, you can benefit from the support and expertise of our team, who use their knowledge and experience to offer a wide range of approaches and technologies that could help you bring your prototype or concept to life. We’ll work with you to explore how advanced technologies, new materials, tools and techniques could optimise your products and increase efficiencies in your manufacturing processes. ADE’s focus on collaborative R&D is also a potential tax benefit and an additional step in future-proofing the organisation.”

Please contact us on 01792 481199 or [email protected] to find out more. Or complete the contact form below.

MADE Cymru is a suite of programmes designed to navigate organisations through Industry 4.0 via collaborative research & development and upskilling. Part/Fully Funded by the European Social Fund/European Regional Development Fund through the Welsh Government. Delivered by University of Wales Trinity Saint David.