A agency of chartered accountants and enterprise advisors has secured £50,000 in R&D Company Tax refunds for 2 of its shoppers.
Yorkshire-based Shenward labored with the 2 firms to submit profitable claims to HMRC.
The 2 shoppers – one in every of which is a restaurant and the opposite a house inside design firm – should not these which might historically be regarded as innovators concerned in Analysis & Improvement (R&D).
R&D aid helps firms engaged on revolutionary tasks in science and know-how however the scope of these tasks is wider than many individuals assume.
Sherad Dewedi, managing companion at Shenward, mentioned: “R&D covers a variety of totally different exercise and companies shouldn’t be delay by the terminology.
“Funding in innovation could be fairly broadly interpreted and it pays to take knowledgeable recommendation on whether or not a specific venture qualifies for aid.
“Many companies are so centered on fixing an issue they received’t assume that what they’re doing is revolutionary when, the truth is, what they obtain might truly be a significant step ahead for his or her trade.
“Whether or not they realise it or not many companies put money into innovation and by claiming an R&D tax refund they’ll uncover new worth and reinvest the financial savings for additional development.”
R&D Company Tax credit have been launched by the Authorities in 2000 and may enable as much as 33% of R&D expenditure to be claimed again. Small and medium-sized companies, in addition to bigger firms, are eligible.
Final yr virtually 40,000 UK firms claimed practically £3.5 billion below the scheme and Mr Dewedi urged companies to speak to their advisors.
“Many firms simply going about their enterprise could also be unaware that they’ll declare this aid – that was definitely the case with the 2 shoppers we’ve simply been profitable for,” he mentioned.
“As a result of we all know their enterprise and work intently with them, we have been capable of determine a chance to probably make vital money financial savings.
“Once we appeared extra intently into the particular tasks, we realised that this was certainly innovation and fitted the standards for a declare.
“Within the area of simply six weeks we have been capable of put a robust utility to HMRC and safe a constructive consequence. Each shoppers have been shocked and delighted with an surprising reward for his or her innovation.
“At a time of constant financial uncertainty such a declare can present vitally essential working capital to help development and growth,” added Mr Dewedi.
“I’d urge any enterprise to speak to their skilled advisors as a result of they might simply be capable of unlock additional worth of their work.”
HMRC guidelines say R&D aid should be a part of a selected venture to make an advance in science or know-how. It could’t be an advance in a social science, akin to economics, or a theoretical subject akin to pure maths. It should additionally relate to an organization’s commerce or potential commerce.
The venture could analysis or develop a brand new course of, services or products or enhance on an present one. Aid may even be claimed on unsuccessful tasks.
“The lesson is easy,” mentioned Mr Dewedi. “Speak to your advisors and search their knowledgeable opinion. It could nicely pay dividends.”