What are R&D Tax Credits?

Research and Development (R&D) Tax Credits are a government initiative that have been developed to encourage innovation within UK businesses. They provide a valuable source of financial benefit and help to accelerate growth and prosperity.

However, very few companies understand the nuances of the complex legislation, and how to maximise the financial benefits of this generous tax initiative. Our expert team leaves no stone unturned to ensure our clients are delighted at the maximum outcome of their claims.

Does my business qualify?

Claims can be made under two initiatives: the SME initiative for smaller businesses, and the RDEC initiative for larger organisations. Under both initiatives, the following key criteria applies.

Are you a limited company or PLC in the UK that is subject to Corporation Tax?

Is your business currently trading?

Have you attempted to design a new product, process, system or service or improve an existing one?

Does your business face regular challenges in it's attempt to remain competitive?

If you meet the criteria above, you are potentially eligible for relief.

Benefits of R&D Tax Credits

Our expert business and technical consultants specialise in identifying qualifying R&D activity. The benefits of R&D Tax Credits are significant as the average UK claim is £61,000.

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Immediately Effective

Access a hidden and immediate source of cash to invest back into your business.

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Real Tax Savings

Create a significant reduction to your current and future tax liabilities.

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Business Growth

Stay competitive, expand into new markets and facilitate job creation and security.

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Futureproof operations

Ensure business stability with better financial planning and reduced risk of future investment.

Successful claims

Our systematic, thorough and efficient approach has achieved £130m+ in benefits for our clients.

Check out some of our successes:

Agri Manufacturer

Agri Manufacturer

Prior to working with us, claims were £15K. We calculated an 8867% uplift in R&D Tax Credit benefit of £1.3m for product advancement.

Plastics Manufacturer

Plastics Manufacturer

This market-leading, global manufacturer benefited from £1.2M in R&D tax relief by appointing us as their strategic R&D partner.

Marine Engineering Construction

Marine Engineering & Construction

We generated £223K for advancements in the knowledge centred around the undersea piling process for drill rigs & wall structures.

Civil Engineer

Civil Engineer

Our client benefited from an R&D claim of £295K for their advancement in a more efficient pipe laying process.

Insur Tech Specialists

InsurTech Specialists

Our client received £117K of R&D Tax Credit through continued innovative development of their unique software technology.

Environmental remediation company

Environmental remediation company

Working with this company we secured over £152K for work on creating holistic and complex eco-sensitive processes and technologies.

Equipment Manufacturer

Equipment Manufacturer

This leading SME client received £185K in cash through R&D Tax Credits for significant product advancements to health & safety.

Pre cast Concrete Products

Pre-cast Concrete Products

Our client received £150K for product advancements in concrete slabs. Improvements included a lower carbon footprint & faster installation.

SME Software Developer

SME Software Developer

Working with this client, £81K of benefit was realised for the development of its revolutionary technology designed for online applications.

Quarry

Quarry

This SME client received £43K R&D Tax Credits for experimental research and tests into valuable soil improvement applications.

Specialist Marine Company

Specialist Marine Company

We were key in recouping £76K in tax credit for the developmental work undertaken on two prototypic submersible vessels.

Computing hardware design company

Computing hardware design company

Working with us, this client reduced its corporation tax by £87K for frontline research in hardware components for wireless technology

How much can I claim?

Tax relief of up to 33% can be claimed for R&D activity and is issued as either a bank transfer payment or as reduced tax liability when the next tax payments fall due.

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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