Engineering by its very nature is the development of existing components, communication methods and the integration of new and old technology. To qualify for R&D relief as a minimum a company must be seeking to make technical advances through the resolution of technical uncertainties. This is almost the job description of most engineering departments. So why are so many companies nowadays failing to claim engineering R&D tax credit?
Making your Engineering R&D Tax Credit Claim
It is the qualification and documenting of these uncertainties and projects that makes it challenging for an engineering R&D tax credit claim to be completed correctly and consequently accepted by the HMRC. You can certainly complete and submit the claim yourself. Nonetheless, a mismatch in the qualifying activities as required by the legislation and the HMRC can often cause your tax claim to be reduced or even worse for your application to be rejected. It is certainly a better idea for an experienced tax consultant to handle this task.
Why Claim for R&D Tax Credits?
For an SME, an engineering R&D tax credit could reduce costs incurred the project by c25%. This is pure cost reduction, not a loan or grant.
This could really be the difference that makes the difference between success and failure in engineering projects. In our experience engineering spans a large range of industries. Below are a few examples of the types of projects which have successfully claimed relief:
- Integration of the latest technical advancement into a larger processing plant.
- Technical adaption of materials used to enable equipment to be used in unique environments. E.g. adaptation of standard technology for use in subsea and arctic conditions.
- The design and fabrication of technically improved products.
- Practical problem solving.
- Modification to existing processes or systems to improve efficiency, capacity and performance.
For More Information on R&D Tax Relief Contact Today
Engineering is a widespread sector covering numerous areas where design and innovation are a mainstream part of everyday activities. It is these activities our specialists are able to identify enabling you to maximise relief and reduce costs by 25% by successfully claiming engineering R&D tax credit or relief. We would urge you to contact our Manchester team today for a free of charge consultation to examine if your engineering projects qualify.
With our focus on commercial and engineering opportunities for the business and making sure our core finance objectives are effectively covered it is easy to lose focus on more peripheral, and yet potentially valuable, financial aspects such as R&D Tax Relief. The R&D Tax Solutions team have assisted in keeping focus on such reliefs and greatly assisted in streamlining the necessary administration and handling of claims. The result of this is that we have been able to obtain significant financial benefits year-on-year.— Jon Simms – Royde & Tucker Limited