Budgets are always under pressure and none more so than your company’s development budget. Development is all about the future, and so is only seen as an expense for the next Quarter.
But, as a manager responsible for development, you know how hard it is to find and keep good developers. There are just not enough of them about. When you find good ones then you want to retain them. But, if your development budget is always being attacked, how can you motivate your team for the long term?
Now, if you can get more cash into your company as a direct result of your team’s efforts, even those that did not come off, wouldn’t that help your cause? Yes, that’s right, cash into your company for your team’s past efforts.
And there is a way, and one that you can take up without needing someone else in your company to be persuaded to do it, with all the company politics that might involve. It’s by building a claim based on your current and past innovative work under the Research and Development Tax Credit scheme.
The scheme is an incentive for firms to increase their R&D as this is vital to UK plc’s future, a future you are helping to build. So it’s time to collect your reward.
Now you may be thinking that this will involve lots of your time and needs help from the company accountant. Sure, you can do it yourself that way, but by using a specialist you will avoid most of the work and maximise the value of the claim. Remember, this is money that you would never have seen, so it’s worth a small percentage of the gain, isn’t it?
Are you doing things that can be claimed? Here’s how to see. Ask yourself these three questions.
- Do you develop innovative products or services?
- Do you use science and technology to do it?
- Is there an element of uncertainty about the outcome of your endeavours?
If you have answered these with ‘probably’ or ‘yes’ then it is time to take action.
Just to encourage you, the last two claims we have handled were from companies who had been told by their accountant that they weren’t able to claim. For one of them HMRC approved over £200,000. Just imagine how much sales revenue would be needed to make this addition to your company’s bottom line.
And when you make your first claim you can claim for up to two past tax years. Does your financial year end in the next four months? If so then time is of the essence because once the key date passes your claim falls.