R&D Tax Credits
Experts
We have a 100% success rate, taking the extra mile approach for our clients. Phoenix R&D framework is a proven framework backed by industry and academic experts ensuring maximum benefits for our clients.
We have a 100% success rate, taking the extra mile approach for our clients. Phoenix R&D framework is a proven framework backed by industry and academic experts ensuring maximum benefits for our clients.
The core team consists of academic and industry experts working in the R&D innovation and industry doctorates domain. Over the years we have helped many SMEs with process automation, funding and on an advisory front.
If you are a UK based limited company, and involved in R&D activities, you can potentially claim back 33p (if company is in loss) for every £1 R&D expenditure and 25p (if the company is in profit). Get in touch to find out whether your projects are eligible for R&D tax credits!
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The Research and Development Tax Credits (R&D Tax Relief) is a government incentive based reward scheme for businesses in the UK for investing in innovation and business enhancement.
The scheme focuses on rewarding businesses across the UK who are involved in innovation and trade enhancements.
HMRC financially benefits from this initiative, as they receive a portion of the money in different forms of taxes. For example, a company may use the tax saving to employ more staff, resulting in having to pay more PAYE and NI contributions. Furthermore, investing in the business in most cases leads to an increase in profits resulting in the company paying higher corporation tax. For HMRC published guidelines regarding Research and Development Tax Relief for small companies, please click here for ‘HMRC Guidelines‘
Your claim is in safe hands. We will pass your claim to our Accounting Partners, an international firm specialising in Tax Accounting and Business Incorporation.
ENSO provides a professional, prompt, personalised and highly confidential service to all clients. ENSO take pride in their work and have, as professional individuals accepted the challenge and responsibility to work collectively towards a higher goal within the Group and society as a whole.
ENSO services are distinguished from other competitors by their pro-activity in providing tax & accounting solutions to clients. ENSO also employ state of the art technology in the provision of professional advice and practical support. ENSO will apply structured business management strategies tailored to each business unit ensuring a high-quality, complaint service to all clients.
R&D tax creditsR&D Tax credits have the power to transform your business onto the next level as it is designed to reward innovation and boosting growth backed by the government. The R&D Tax credits are an amicable source of cash for your business that can be used for business growth, hiring new staff or further innovation.
Businesses that are eligible for R&D tax credits. To qualify for R&D tax incentives, you must: be a Registered company in the UK, have conducted qualifying R&D activities and have invested or spent money on R&D activities. Who qualifies for R&D tax credits? R&D is not restricted to any particular sector. It occurs in everything from bread making to engineering, chemical industries, to construction or digital development. To see if your business qualifies for R&D tax credits Contact us at info@phoenixrnd.co.uk for a free no obligation strategy session.
Businesses in the UK who spend money on innovating or developing new products, business processes or services; or enhancing existing practices or products, are eligible for R&D tax relief. If your business is spending funds on innovation you can claim R&D tax credits to receive cash payment and/or Corporation Tax reduction (depending on your profit or loss). The scope and support of R&D tax credits is incredible, in fact the schemes are in practice in almost every sector/industry in the UK, however the awareness is limited. If you are claiming R&D tax credits for the first time, you can typically complete the claim for the last two years of your accounting period.
The HMRC R&D project eligibility criteria is quite broad. Whatever sector or size of your business, if your company is investing in attempting to resolve scientific or technological uncertainties, then you may be conducting R&D qualifying activities. This may include either: creating or developing new products, services or processes modifying or changing existing products, services or processes. If the outcome of your project is uncertain, or not sure whether the result of the product development, process or service creation will be successful, then you are attempting to resolve technological uncertainties and thus qualify for R&D activities.
There are two types of businesses as defined by HMRC, (i) SME (ii) Large companies. Large companies, if the number of staff is more than 500 or turnover exceeds £100 million, these businesses fall into this category. Small and Medium Size Businesses (SMEs) The number of staff is less than 500 and the turnover is less than £100 million, these businesses fall into this category. Most businesses, including start-ups fall into this category
How much is an R&D credit claim worth? The R&D tax credit claim depends on your R&D spend. You would need to identify the qualifying expenditure and calculate it based on the following rates. If the business is making a profit, then the R&D tax credit for qualified expenditure is 25% and 33% if the business is making a loss. You (as an SME) would be able to claim 33p for every £1 R&D qualified expenditure. The average claim for an SME is £54K (2018-17).
At the start of every R&D claim, we will start by gathering information about your R&D activities and expenditure to establish at the earliest stages, whether your projects qualify based on HMRC guidelines.
Refining the information process is designed to maximise your claim and analyse the overall project expenditure along with the team contribution, by creating a winning combination for your R&D tax credits claim.
The vetting process in Phoenix R&D framework is designed to assure quality, by analysing your claim from every angle giving you peace of mind and limiting any associated risks with your R&D tax credits claim.
We will formulate your R&D tax credits claim for the most advantageous benefit ready for submission. Our skilled team includes financial analyst’s, business and strategy consultants, researchers, and compliance experts to assist you in the whole process.
Post submission or filing, HMRC typically take 6-8 weeks to accept and award the benefit (in terms of Corporate Tax adjustment or Cash payment). R&D tax credits are usually repeated with extension or further development of the research activities and the same process can be repeated every tax year.
Only 3% of the UK based eligible
businesses are aware of R&D tax credits scheme.