Can you claim?

17 July 2017

Research & Development Tax Credits

We have teamed up with ex-Inspector of Taxes to help decide whether or not a project qualifies for tax relief. The rules are complex and therefore we thought an ex-Inspector would be the best person to ask for advice!

To qualify for relief, companies must, broadly, undertake Project(s) which include the following activities:

  1. Create or make an appreciable improvement to a process, a material, a device, a product or a service which incorporates or represents an increase in the knowledge or capability in technology; OR
  2. Use technology to duplicate the effect of an existing process, a material, a device, a product or a service in a new or appreciably new way.

The key thing is the presence of uncertainty at the start of the R&D activities and having to experiment to get the desired result.

Just some examples:

  • Adapting Pitta making production line to manufacture pitta wraps which have different physical properties and dimensions;
  • Developing software for delivering same content to different types of devices;
  • Enclosing a "talking toy" in a baby garment using existing materials but deployed in a novel way to make the garment machine washable without impairing the toy!

We have had some recent successes for clients and therefore if you think you might have a Project which could qualify or want to know how to plan a Project so that it will qualify, do give us a call.