“We are not sure if what we do is unique enough to be considered R&D”
A small privately-owned software development company with 30 employees had been trading for many years. Despite earning only modest profits, typically £30,000 a year, they had never thought to apply for R&D tax credits.
After taking advice, their corporation tax bill of £6,200 was eliminated and instead they received a cash refund of £80,000, a total cash flow saving of £86,000.
“Everything we do is bespoke, so can this be R&D?”
A local engineering company undertaking bespoke to order projects asked how does R&D work when everything we do is unique and need to be made to suit each client’s needs?
The work carried out was in some cases innovative but did not contain any uncertainty, existing processes were simply applied to a new scenario.
However, by looking more closely at some of the individual processes involved in completing the entire project, we were able to identify elements of qualifying R&D that were present and a repayment of £24,500 was received from HMRC.
The facts of these cases speak volumes and show that if you don’t fully consider R&D tax relief then you may be missing out.