Would You Credit It? Only If You Understand It
Article taken from March - May 2019 ADS Magazine
The R&D Tax Credit specialist
R&D Tax Credits are the most generous form of corporation tax relief in the UK – and the most under-claimed, says Tom Verner, managing director of the Momentum Group.
Then there's the belief that only tax-payers can claim them, or that R&D is the exclusive preserve of 'men in white coats' in labs. Both are false.
Verner recognises that more people are aware of R&D Tax Credits than when he set up Momentum in Northern Ireland in 2009, "but there still appears to be a serious lack of understanding about it.
"Certainly most of the companies we talk to are not claiming the full benefit they're entitled to."
Momentum specialises in navigating the maze of R&D and HMRC compliance, offering a 'no win, no fee' service. Momentum consultants help companies identify qualifying R&D, prepare their claim and defend it, should HMRC question their application. The Bangor-based firm of accountants, tax advisers, business consultants, researchers and analysts has a large aerospace client base, 97% of which are SMEs. Momentum boasts a 100% success rate on claims, which has generated over £100m.
Qualifying R&D can include new processes, products or services, as well as appreciable improvements to existing ones. Even for experts, it’s not always easy to identify what qualifies – this is where Momentum excels
"The guidelines are very strict," says Verner, but the benefits of getting it right are substantial. The average payment per claim across the UK in 2017 was £86,000.
A thorny question for many companies is whether they'd be better off with government research grants or applying for the generous R&D Tax Credits. "Usually tax credits bring more benefit than grants", advises Verner.
Momentum's consultants, who operate across the UK, draw on their expertise and experience to advise companies where their strategic advantage lies. Verner says it's a service unique to his company. “We want to build long-term relationships by making sure client receives the optimum result."