R&D tax relief supports companies that work on innovative projects in science and technology.
You cannot claim if the advance is in:
· the arts
· social sciences,including economics
Following the Govt’s discovery that a number of non-compliant or fraudulent claims have been submitted the rules have been tighten and the tax breaks are not as generous. However, we still believe that those company’s that have qualifying R&D should make a claim. Furthermore as Acconomy only ever charge for time spent rather than charging a so called‘contingency fee’ usually amounting to 20-25% of the claim our clients get to keep more of the tax saved.
The headline of the revised scheme are as follows:
Small and Medium-sized Enterprise R&D Tax Relief
SME R&D tax relief allows companies to:
· deduct an extra 86% of their qualifying costs from their yearly profit, as well as the normal 100%deduction, to make a total of 186% deduction
· claim a payable tax credit if the company has claimed relief and made a loss, the payable credit is worth up to 10% of the surrenderable loss
To claim the relief, you need to be a SME and show how your project meets the standard definition of R&D.
If you’re making your first claim for tax relief as a SME, you may be able to apply for advance assurance.
Companies That Can Claim
You can claim tax relief if you’re a SME with:
· less than 500 staff
· a turnover of under 100million euros or a balance sheet total under 86 million euros
If your company has external investors, this can affect your SME status.You will need to include the figures of linked and partner enterprises when you work out if you’re a SME.
The staff, turnover and balance sheets of any linked or partner enterprises should be included in your total.
"I've been a client of Nigel's for almost a decade now. There's a reason for that......if you find a good accountant, stick with them. Nigel's advice is always sound and well thought out, and is backed by a no nonsense approach to getting the job done, whilst still having an excellent sense of humour. I have no hesitation in recommending both him and Acconomy as a smart partner for your business"
- Graham Dopheide, Director, FONTOF TESTING (UK) Limited
Working closely with trusted partners, our financial planning and wealth management services can help you make your money work harder for you, whether you’re planning your retirement, or wanting to safeguard your business for the future. Here are the areas we can support you with:
Acconomy have over ten years experience in helping our clients understand whether they may be eligible for R&D tax credits and helping them submit claims if they are eligible. We only ever charge for or time and do not work on a so called ‘contingency fee’ basis. This means our clients get to keep far more of any eligible tax saving.
We go beyond the day-to-day when it comes to compliance processing for startups and entrepreneurs. Work with Acconomy as your Intelligent Virtual Back Office and you’ll have clarity on your business finances through our expert planning and advice for the lifetime of your business. Our support provides both everyday accounting services as well as long-term high level planning to ensure the greatest opportunity for growth and success.
We’ll see where your business is today, and help you discover what it needs to thrive tomorrow. Our approach is cloud-based, meaning that we can easily (and securely) scale our support for you as your business grows, using tools like Xero, QuickBooks Online and Xledger to streamline your accounting processes.
Not only that, but we also provide specialist financial help through our trusted strategic partners, including funding, grant claims and tech stack development.
Nigel Simmons FCCA
Acconomy Chartered Certified Accountants
Are you a serious startup looking for guidance and insight? Are you a growing SME looking for assistance in moving to the next level? Maybe you're based outside the UK and need a local partner for on-the-ground support?
Whatever you’re looking for, please get in touch. We’d love to discuss further how we can help.