Welcome to our blog and thank you for taking an interest.
So what is this blog about?
The aim of this blog is to provide a source of information and a forum for companies who are innovative in their field but are not receiving the support and benefits they may be entitled to, especially R&D tax credits but also including the patent box, grants and other support available.
Our mission at Fiscale is to spread the word and help companies access this valuable source of funding from the government.
The R&D Tax Credits aspect is a bit of a passion of mine, (ok, so it's a sad geeky passion) but it amazes me that even after the R&D Tax Credit scheme has been in place for 13 years, there are so many companies out there that should be claiming but are not.
The same can be said for grants - there are many companies, and individuals, who are struggling despite the fact that there are various sources of grant and matched funding out there waiting to be claimed.
This blog will provide you with information on how you can go about obtaining this funding. We will include case studies, examples suggestions, pitfalls plus we'll bust a few of the myths that are out there.
We hope that over time we will be able to convince you that you should at the very least be thinking about R&D Tax Credits, if not claiming them.
Technical Director - Fiscale Advisors
Want to learn more?
Find out more about claiming government funded R&D Tax Credits
Even more free money available from HMRC
OK we admit that was designed to be an attention grabbing headline however it is true. Read on to find out how the R & D Tax Credit relief scheme could benefit your small business.
Back in December 2014 when the Chancellor delivered his Autumn Statement he announced an increase in R&D tax credits relief for SMEs (Small Medium Sized Enterprises) from 225% to 230% as from 1st April 2015.
As an example if you are spending £100,000 in Research and Development you could receive a reduction in your tax bill of £26,000 being 26% of the qualifying Research and Development expenditure. The R & D Tax Credit has increased significantly since the initiative was first launched by the Labour government in 2000. Under Labour the rate of tax relief for SMEs remained at 150% until July 2008 when it was increased to 175%. The Conservatives upped the rate to 200% in April 2011 and then to 225% in April 2012 before this latest rise to 230%. It appears that R & D Tax Credits have been seen by successive governments as a way to incentivise businesses to invest in R &D and to contribute to the growth of the UK economy.
The reality however maybe a little different
HMRC provide some interesting facts and figures on R & D Tax Credits. From 2000-2001 until 2012-2013 under the SME scheme over 100,000 claims have been made and more than £9.5 billion of tax relief has been claimed by 28,500 companies. The number of claims has increased year on year, with a 30% uplift in the period 2012-2013.
According to the Department of BIS (Business, Innovation and Skills) in 2014 there were an estimated 5.2 million SMEs in the UK. If my calculations are correct that is just over a 0.5% uptake, in fact the figures are potentially even lower as the definition of an SME for R &D Tax Credits purposes is under 500 employees compared to under 250 employees for the BIS estimates. So what about these millions of SMEs? Why have they not taken advantage of the free money on offer from HMRC?
It could be that some of them have and their claims were unsuccessful but we believe that in the vast majority of cases small businesses have either never heard of the scheme or do not fully appreciate that they are undertaking R&D.
Its hard not to think of people in white coats working in a laboratory when you hear the phrase R & D. Fact is over 32% of the claims made in 2012-2013 came from manufacturing companies and over a quarter from the Information and Communication sector, the vast majority of which do not have white coats or laboratories. . Yes, R & D is far more prevalent than you think! All it takes is a quick phone call to us and we will soon be able to tell you whether the activities you carry out qualify as R &D. We have spoken to many business owners who were aware of the free money on offer and had even looked at the HMRC website to establish what was involved in submitting a claim but were put off by the complexity of the information required. In the words of the famous TV advert from 2008 Tax doesn't have to be taxing . If you need some help, just give us a call on 01440 708333 or visit our website for more information on our simple . 7 step process Not currently paying tax or a large company employing over 500 people? Check out our websitefor more information.
Technical Director - Fiscale Advisors