Recently, as we’ve been going through some statistics and data in R&D funding, we came across a stat showing that less than 10% of eligible UK companies reclaim the R&D tax credits they are entitled to through HMRC’s R&D scheme. While many eligible companies are simply unaware of the scheme and its benefits, we believe a major factor in the reluctance of companies to take advantage of the scheme is that they don’t think their business conducts “R&D”.
While many people still believe “R&D” relates only to processes involving white coats, test tubes and immaculate laboratories, the reality is that R&D encompasses any advance in a product or service in any sector, we’ve helped companies of all types – from mobile app developers to cybersecurity firms to popcorn-makers – file successful R&D credit claims.
If you’re not sure whether you qualify for this invaluable scheme, here are 3 ways to tell:
1. You’ve made an “advance”.
“Advance” is somewhat of a broad term, but we’ll try to simplify it for you. An advance is termed as a development that wouldn’t be easily figured out by an expert at the outset, meaning that if your business has created a product that is peerless in terms of purpose and use, or if your business has improved or enhanced a product or solution that already exists, you likely qualify for a rebate from HMRC.
2. Your project has an uncertain roadmap.
This one is a little bit more simple. If you’ve gone into development with an idea but without knowing exactly where you’re going or how you’re going to get there due to a lack of existing solutions to bridge and fill in gaps, you likely qualify for R&D tax credits.
3. You’ve created something bespoke from scratch.
Quite simply, if your business has created a bespoke product, technology or service from scratch, either for your business or one you’ve been contracted to work with, you likely qualify under the scheme.
And that’s all there is to it! Provided your business is within the parameters of the SME scheme, you should qualify for R&D tax credits from HMRC!
Still not sure whether you qualify? Need help with the process? Get in touch with us at firstname.lastname@example.org to set up a free consultation with us to analyse your business’ options. With a 100% success rate and a team of specialists who have reclaimed millions of pounds for UK SMEs, our wealth of experience can be the key to unlocking the maximum possible benefit for your business.