If you are thinking of undertaking a research or development project with a University – or, indeed, are engaged in R & D generally – you may be thinking about how you will fund such a development.
Here are three options…
- Fund it out of your own resources
- Put in a grant application
- Fund it in arrears through the R&D Tax Credit scheme.
Lets look at them in turn.
Fund it out of your own resources
Great, if you have the resources. But why bear all the costs when you can get a significant amount of it back again?
Put in a grant application
You must find the right funding body with the right budget and enough left in it to cover your project. Then set about filling in the forms to meet the application criteria, submit and wait whilst you get approval – or not. And then you cannot start until the funds are approved.
Fund it in arrears through the R&D Tax Credit scheme.
With the R&D Tax Credit system you need to fund the research yourself initially, but you can get a very large proportion of it back as you are entitled to valuable government funding through the R&D Tax Credit scheme for applicable projects. We can help you determine if that’s likely before you commit in a few hours and you are then ready to go. Simple isn’t it?
Unfamiliar with the R&D Tax Credit scheme?
Have heard about it but not aware it could be relevant to you?
Unsure how to proceed?
Here’s the story: All companies that pay Corporation Tax can claim additional Corporation Tax allowances worth 125% (135%from 1st April 2015) of eligible expenditure on innovative R&D.*
Furthermore, companies not yet in profit or with insufficient taxable profit to cover the additional allowances can surrender these allowances for cash from HMRC.
The R&D Tax Credit scheme has little to do with tax (that’s only the payment mechanism) and almost nothing to do with accounting. It is mostly about understanding how the R&D you are doing is innovative within the extensive rules and regulations of the scheme and convincing the HMRC inspectors.
That’s where we come in. With our unique combination of having both a Chartered Engineer and a Chartered Accountant working together on your behalf we manage the entire process for you. We operate on a success fee only.
You may have been advised in the past that “you cannot claim” or “what you are doing does not qualify”. Most of our clients were so advised; yet we have recovered hundreds of thousands of pounds for them. Now it is your turn.
All it takes to establish if you have a case is a brief chat.
P.S. Why today? That’s because you can claim for up to two past years’ R&D – but the clock is ticking and once you pass your next year-end, the whole of that year is lost!
*Rate quoted is for SME companies. Rates differ for large companies.