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Making the most of R&D tax credits

Posted on October 27, 2010

Brian Williamson, a director of Jumpstart Ltd, takes a look at R&D tax credits and finds that many companies are missing out. A significant barrier to accessing R&D tax credits is that many companies do not believe they are eligible for the programme. Often, the decision to apply is taken by the finance director or a financial adviser. However people with financial backgrounds may not be best placed to judge eligibility since this depends primarily on technological factors which are best examined by those with a strong understanding of science and technology within the company.

Potentially, large amounts of cash are available for companies that meet the criteria. Profitable businesses could receive just over 15% of eligible expenditure and loss-making businesses can claim 24.5%. Companies can even go back two financial years and resubmit tax computations.

How can companies know if they are likely to qualify? A good start would be to consult an expert consultant with specialist staff able to understand the technologies applicable in the relevant sector. Consultants such as Jumpstart will be prepared to work on a success fee basis. The average rebate obtained by Jumpstart for their clients is £60,000 and they have so far completed in excess of 1,500 claims.

The process need not be time consuming. There is normally an initial brief screening process. If a company appears eligible the consultant will then proceed to construct the application. The application is then submitted to HMRC and the matter can be concluded in as little as 9 weeks.The RM2 Partnership is pleased to recommend Jumpstart, who are specialists in the area of R&D tax credits and have an enviable record of success on behalf of their clients.

For more information please go to http://www.jumpstartuk.co.uk/ or call them on 0131 240 2900.

 
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