R&D and Capital Allowances

Opportunity number 1:- Research and Development (R&D) costs and expenses

Research and Development (R&D) tax credits are a government incentive that rewards innovative businesses for their investment in research and development.

This incentive is for Limited Companies that pay Corporation Tax and undertake Research and Development.

To be eligible your company must have spent money on R&D. The scope for R&D tax relief is far more wide-ranging than most business owners think, so if in doubt it’s always worth a phone call to check.

The average claim back by an SME in the UK is more than £60,000.

This cash boost could have a fantastic transformative effect on your business in terms of it being able to innovate further and even hire new staff.

Whatever size or sector, if your company is taking a risk by attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out qualifying activity. This could include:

  • Creating new products, processes, or services.
  • Changing or modifying an existing product, process or service.

 

Within the accepted HMRC research and development definition, R&D doesn’t have to have been successful to qualify. You can also include work undertaken for a client as well as your own projects.

Opportunity number 2:- Capital Allowances

Over 90% of UK businesses and commercial property owners are missing the opportunity to claim tax relief using Capital Allowances.

The result is a pot of 10s of billions that is being left unclaimed!

If you own commercial property (and/or some residential buildings) you may qualify for Capital Allowances when you buy assets to keep and use in your business or buildings that contain these assets e.g. fixtures

These assets include such things as:

  • Electrical systems
  • Plumbing
  • Heating
  • Air conditioning
  • Fixed furniture

 

Capital Allowances allow you to deduct some or all of the value of the asset from your profits before calculating your tax bill.

It will come as no surprise that HMRC does not actively promote this opportunity!

Separating the value of any fixtures you have acquired from the cost of the structure of the property itself and making a correct full claim for Capital Allowances is a highly technical exercise that straddles both the taxation and quantity surveying professions.

We can help maximise the claim value if:-

  • You own UK commercial property or
  • You own multi-unit residential buildings or
  • You own furnished holiday lets or
  • You are improving or renovating buildings or
  • You are looking to sell or purchase property

 

With the average claim value being well in excess of £100,000 and 9 out of 10 owners of commercial property being eligible to claim,it should be obvious that this is something you should look at.

If you think that there is even the remotest possibility that your business may qualify for either R&D or Capital Allowances tax relief then please get in touch to discuss further.

The initial consultations to discover whether you may qualify for either of these “government giveaways” are offered entirely free of charge and you can find out more on our webpages here.

Capital Allowances claims

Research and Development (R&D) claims

A no-brainer….surely!

Need further advice on any of the topics being discussed? Get in touch and see how we can help.

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About Karen Jones

Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.

With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.

Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”

Karen’s specialist skills:

  • Personal Taxation
  • Tax Efficient Planning
  • Trust Administration
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