The R&D tax credit scheme is unique for a number of reasons. Unlike grants, it pays out after R&D is conducted, and unlike business ventures, credits are paid out even if the research fails. Also, unlike traditional tax claim procedures, HMRC requires companies to involve staff with an understanding of science in making successful applications.
It is easy to see why companies often find it difficult to make successful claims. Internal financial controllers often have expertise in the taxation system but not in the science that makes the company tick. On the other hand, the company’s technical experts may understand the science behind their company’s products but often have limited exposure to the financial side of the business. Unfortunately, however, any lack of interaction and cooperation between the two groups can have disastrous consequences when it comes to making and defending an R&D tax credit claim.
Jumpstart facilitates the interaction of these two business disciplines in order to make robust, accurate and successful claims. By collecting technical information on the company’s projects and using this as the focus of the cost collection, in all cases we aim to satisfy HMRC that the claim has been compiled with the input of both financial and technical staff. More details on this approach, and its results, can be found at http://www.jumpstartuk.co.uk/why-jumpstart/
Posted on Wednesday, 6th October, 2010