Manufacturing & Engineering

Momentum Group is one of the UK & Ireland’s leading R&D Tax Credits specialists providing a complete service in securing a maximised benefit on your behalf.

What is R&D for Manufacturing & Engineering

Research and Development (R&D) Tax Credits are a government initiative designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new employees and ultimately growing.

Claims can be made under two initiatives: the SME initiative for smaller businesses, and the RDEC initiative for larger organisations. Claims for R&D Tax Credit benefits can be made by a range of companies that are facing scientific and technological challenges.

If a company can show they have attempted to make an advancement in science or technology, the project was designed to overcome an element of industry uncertainty or the project could not have been readily carried out by competent professionals or industry experts then your project could qualify.

What Manufacturing & Engineering projects qualify?

SMEs can benefit from an enhanced rate of R&D Tax Credits compared to larger business. For a company to be regarded as an SME and qualify for this initiative it must be a UK limited company or PLC, employing fewer than 500 people, have an annual turnover of less than €100 million or a balance sheet not exceeding €86 million. Many of the costs could actually be embedded in your normal operating behaviour and go unaccounted for.

Tooling and equipment fixture design and development

Designing innovative manufacturing & Engineering equipment

Integrating new materials to improve manufacturing and engineering processes

Evaluating and determining the most efficient flow of material

Increasing ease of operation or suitability of manufactured products

Identification of technological improvements to manufacturing processes, products and software used

Development of new processes to meet changes in manufacturing/engineering regulations

Attempting to design or develop a product, process or make an improvement to something already in existence that is proving difficult to do

Product or process testing and prototyping

Benefits for Manufacturing & Engineering

All costs incurred on any research and development activities could qualify for a claim in the relevant tax year. You may also claim for expenditure such as materials and consumables, travel expenses, transport and utility costs may also be claimable.

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Immediately Effective

A hidden and immediate source of cash for many small and mid-size companies.

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Real Tax Savings

Creates a significant reduction to current and future years tax liabilities.

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Business Growth

Create and protect jobs whilst enhancing competitiveness within your sector.

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Futureproof

Tax credits for qualifying activies may carry forward up to 20 years.

FAQs

If you are new to R&D Tax Credits, or have made claims in the past, you may have various questions you’d like answered, so we’ve put together a list of FAQs to help you along.

What is R&D Tax Credits relief?

The UK Government introduced R&D Tax Credits in 2000 to stimulate business innovation. R&D Tax Credits relief allows companies that carry out development of innovative products, processes and services to claim an extra corporation tax deduction for doing so.

What does our company have to do to qualify for the R&D Tax Credits initiative?

Many companies don’t realise how much of what they do within their day-to-day activities actually qualifies as R&D. We help our clients to identify all qualifying activities that can be claimed for. We also help our clients to evolve by developing tailored R&D strategies that fulfil business objectives, ensuring future R&D activities and all associated expenditure is fully optimised.

Our proven track record, methodologies and robust processes have been developed to enable our expert team to work with you every step of the way and to undertake approximately 90% of the work so you can concentrate on developing your business. This includes writing your full comprehensive HMRC compliant technical report.

What is the time limit for R&D tax relief claims?

You have two years from the end of your accounting period to submit a research and development (R&D) tax credit claim for any qualifying activities and associated expenditure during this period. R&D Tax Credits are a corporation tax relief and the deadline for amending your corporation tax return is typically two years after the end of your accounting period.

How much R&D relief can our company get?

SMEs can claim up to 33% of R&D expenditure incurred, and large companies up to 10%. For a rough estimate, you can use our handy calculator [link]

However, it’s very likely that you are potentially undertaking much more in the way of qualifying activities for this purpose than you think; so contact us today to arrange a free and no-obligation consultation.

How do R&D Tax credits work?

If your company has incurred expenditure (including time & salaries) developing new products, processes or services, or if you’ve made enhancements to existing products, processes or services, you will probably be eligible for R&D tax benefit. By using our proven process to achieve a successful outcome, Momentum will prepare your claim ready for submission to HMRC.

What if HMRC query the claim?

In the unlikely event that HMRC raise a question about an R&D Tax Credits claim, Momentum has a fully qualified team, including ex-HMRC personnel, internal compliance officers and professional advisers, to respond to such queries. Our methodologies and reports meet the legislative guidelines, and with a 100% success rate, you can be assured that you’re in safe hands.

Why choose Momentum over other companies?

Unlike many others, Momentum doesn’t view your R&D as a mere tax-mitigation exercise. We know that the R&D Tax Credits initiative offers businesses an opportunity to grow and to realise their potential. And with 1000+ claims with over £130m in claims under our belt, we make a real difference where it’s needed most.

Our long-established business advancement team stands behind every application we prepare, working with our partners and HMRC before, during and after a claim.

Will we get stung with a big bill?

No! Our business model is simple, we only raise an invoice when you receive your benefit. Our professional services fees are a percentage of the overall benefit we secure for you, so you’ll always be better off with no financial risk of upfront fees etc. and ensuring that you will not be left out of pocket!

Speak to us for a free consultation

What can you achieve with R&D Tax Credits? Get in touch today to speak to one of our experts.

Contact us
Call 028 9140 4030