It is essential for businesses to investigate all support available in order to gain a competitive advantage in a global market.
In the current economic climate, many companies need help with raising finance for their businesses. They might require more working capital to fund increased sales or plan an expansion, but don't yet know the best way forward.
This is why it is essential for businesses to investigate all support available in order to gain a competitive advantage in a global market, regardless of whether your business develops satellite technology or just uses satellite applications in innovative high-tech environments.
Specifically designed to stimulate (and reward) innovative activity in UK businesses, the R&D tax relief programme is actually one of the best ways of unearthing hidden cash reserves within your own company, which you’re legally entitled to.
WHY SHOULD YOU CARE?
Companies can secure tax benefits in the form a payable cash credit, a tax rebate, or a deduction that can be used against future profits. These benefits are of crucial importance and can make a real difference to the finances of dynamic and expanding companies.
“The fact that the R&D tax credit programme is not well understood is an issue. As long as business owners do not understand the system and how to claim what is due to them, it is lost investment for British businesses. This has a direct impact on our economic growth locally and nationally, and makes British businesses less competitive internationally” says long standing client of Jumpstart Angela Mathis, CEO of ThinkTank Maths, an innovative company that uses complex mathematics to provide game-changing solutions for companies (including space exploration, for the European Space Agency).
ARE YOU ELIGIBLE? PROBABLY!
One of the reasons that most businesses miss out on an R&D tax relief windfall, is that they think they’re not eligible for the scheme, because they believe R&D tax relief is only for companies with R&D departments and men in white coats. In our experience, many businesses are involved in research and development activities, although they may not record them as such.
“The biggest surprise was in understanding how the system really works and finally having the rules explained unambiguously about what is eligible. There are a lot of misguided and confusing interpretations out there” continues Angela Mathis.
The fact is that any company that spends money trying to improve a product or service through a technological advance, using qualified staff and appropriate project controls, and where there's uncertainty about the technical outcomes, is likely to be eligible.
SO, WHAT EXACTLY ARE ELIGIBLE ACTIVITIES?
For example, within the last 2 to 3 years…
- Have you tried to improve your existing products through technical changes? (e.g. Increase in strength or decrease in weight.)
- Have you had to resolve technical problems with any of your products or manufacturing processes? (e.g. new materials/composites, or substituting new materials on an existing airframe design)
- Have you experimented with new equipment or production techniques? (e.g. problems carrying out NDT – non-destructive testing – on completed components)
- Have you found more efficient ways to produce your products or services?
- Have you developed new tools, products or services using technology?
If you answer yes to any of the above questions, you are likely to be performing work that is eligible for R&D tax relief and should be getting excited!
BUT HOLD ON A MINUTE...
Doesn’t the very mention of ‘tax’ have you picking up the phone to your accountant? Not with this kind of tax, no, because R&D tax relief is first and foremost a technical area, requiring a special combination of skills: highly qualified technical experts who also have an unrivalled understanding of the complex R&D tax relief legislation involved.
“ We design and manufacture cube satellites for customers such as NASA and the US Airforce and although we were clearly doing R&D, we were being advised by people who didn’t understand the company and didn’t understand the potential. After working with the consultants at Jumpstart, we recovered more than £60,000 from HMRC. We were absolutely delighted and are now working with them on further R&D tax credit submissions” says Craig Clark, Chief Exec of Clyde Space, the leading supplier of small and micro spacecraft systems and one of Jumpstart’s longest standing clients.
THE KEY IS TO IDENTIFY AS MUCH ELIGIBLE EXPENDITURE AS POSSIBLE
The more you identify, the greater the value of the relief you’ll receive from HMRC. So the ideal partnership to deliver the best results for any client is the combination of a specialist technical R&D tax relief advisory firm such as Jumpstart, who speaks both your language and HMRC’s; and your accountant. In collaboration they can manage the assessment, preparation and submission on your behalf, ensuring you receive the biggest return for the least possible effort.
PARTNERSHIP IS THE WAY TO GO
Jumpstart is a science and technology company that specialises in helping UK businesses profit from R&D tax relief. They provide a rare blend of technological and business expertise to guide companies through the complexities of submitting claims to HMRC. 100% focused on helping companies make successful claims, they have saved over £43 million for their clients so far.
Jumpstart match every client with one of their highly qualified and trained technical specialists. They undertake a technical review of all the projects and processes that help support the claim. The technical specialist’s background coupled with a thorough understanding of the legislation enables Jumpstart experts to submit a fully comprehensive, expertly written claim to HMRC. This translates to maximised claims that are more accurate and defensible to HMRC.
Want to work with the best?
The best people and the best processes get the best results.
