R & D Tax Relief

UK companies involved in R&D of innovative products or servises can apply for a Tax Relief or Credit for a project of up to 2 years back. British Plastics Federation recommends GGTC as a service provider, who can help you complete the claim and will guide you thorugh the process.

Facts about research and development (R&D) Relief/Credit:

• The average HMRC R&D Tax Credit claim for SME’s is £40,000, and £300,000 for large companies.
  
• 8,500 companies benefited for the financial year 2008-2009, receiving £40,000 on average.
  
• £950m has already been given back to UK companies during 2008-2009, over £4.5bn since 2000.
  
• More than 95% of the companies met by GGTC are eligible to take advantage of the R&D Tax Credit scheme.
  
• HMRC stated average time to cash from filing a claim is 42 days
  
• "R&D tax credits are the biggest single funding mechanism provided by Government for investment in business R&D" Department of BI&S

What is the R&D Tax Credit Scheme?

The R&D Tax Credit scheme is an EU initiative that is aimed at SME’s and seeks to recover development costs that companies have invested in innovative product and manufacturing processes. 

The R&D Tax Credit scheme is a key part of the Governments strategy to boost innovation in business. Credits reduce the real cost of investment, improving products and processes.

The UK government subsequently introduced a large company scheme. Additionally, the scheme was modified from the 1st April 2008 reducing the retrospective claims down from 6 years to just 2 prior years but in doing so increased the claim benefits, in the case of small businesses to 75% and large companies to 30%. The uplifts are 175% for SME’s which is moving to 200% this year and 225% next year, whilst for the large company scheme it remains the same.

There are probably over 150,000 SME’s alone that could benefit from the scheme. However, the off take to date remains relatively low, particularly in comparison to Europe.

Part of the problem is the communication and marketing of the scheme. The terminology that’s used in the official communication describes the scheme as “R&D in the fields of science and technology”. This creates a false impression that only pharmaceutical and aerospace businesses need apply.

	BPF Members using service of GGTC will gain:
	40% discount on the standard 1 off set-up fee
	10% discount on  the standard claim fee
	A 4 accounting period engagement - A claim combining the clients 2 historic accounting periods and the current year of the engagement, plus only 1 forward accounting period claim (ensuring that in the event of a HMRC enquiry members are covered per standard engagement service)
	Non-BPF Members can still use GGTC services with a lower rates of discounts on the operational fees of:
	20% discount on the standard 1 off set-up fee
	5% discount on the standard claim fee
	A 4 accounting period engagement

 

Useful information can be found in the downloadable PDF by clicking on the image

To receive more information on the R&D Tax Relief / Credit please contact the form below and one of the GGTC advisors will contact you shortly...

Title	Mr Mrs Miss Ms Dr Prof
Firstname
Lastname
Email
Company name
Phone number
Other comments