R&D Tax Credits are part of a Government scheme that allows companies investing in innovation and developing new processes, products or services to reclaim up to 33% of the amount spent on Research and Development – the equivalent of up to 33p for every £1 spent on qualifying expenditure.
If you would like to speak to our dedicated R&D Claims team please contact us.
How We Work
Finerva’s R&D Tax Credits team can help you:
- Prepare and Submit a Claim notification form, required for submitting your R&D Tax claim
- Identify your qualifying costs, maximizing your claim
- Write a technical report reflecting the most up-to date HMRC requirements
- Prepare and Submit an Additional Information form, required for submitting your R&D Tax claim
- Defend your claim in case of an unlikely opened enquiry from HMRC.
Steps we will follow to prepare a successful R&D Tax Claim
At Finerva, we know that each company is different, so we do not follow a strictly defined approach, but adopt one which fits closely your business needs. However, some of the steps that you might expect during the preparation of your R&D tax claim would include:
- Initial conversation – A member of our R&D team will get into contact with you to give you a detailed information regarding the scheme, discuss your R&D projects and any related costs and answer any questions related to the R&D tax scheme that you might have. Please contact us [here’ if you would like to arrange a conversation.
- Claim preparation – We will work directly with your technical and financial team to gather the required information. We can extract your financial information from your systems to make the process easier. We will identify the R&D qualifiable costs and help prepare a detailed technical narrative compliant with HMRC’s requirements.
- Submission – Once the claim and report is finalised we will ensure it is submitted to HRMC . We will also prepare and submit the mandatory Additional Information Form.
- Enquiry Support –in the event HMRC raise an enquiry about your claim we can support you with the response and ensure you have the best chance of defending your claim. If you are undergoing an enquiry at the current time and you would like to speak to one of our team, please contact us.
Why Choose Us
| Finerva | Other accountants |
| Dedicated R&D tax team dealing with the claim preparation | Lack of professionals with specific R&D tax claim experience |
| Expert team who can help identify all the eligible costs to maximise the benefit you are entitled to | Under claiming or including ineligible expenditure resulting in interest and penalties |
| ICAEW Chartered accountant supporting the preparation of the numbers | Not professionally accredited accountants |
| 7-years of filling and defending R&D tax claims | Lack of direct experience |
| A team of postgraduate qualified technical experts | Very limited or no technical experience |
| Time-saving and robust claim preparation process | Lengthy and time-consuming process |
| Enquiry defence in case of an opened enquiry from HMRC | No experience with defending enquiries |
Get in touch with our R&D Expert
020 3422 9800-
Ben Rule Co-FounderBen is an ICAEW Chartered Accountant and looks after our R&D Tax Credits division. Previously, Ben worked at PWC as well as more commercially focussed finance roles at Sky and BUPA which helps him to provide strategic advice and support his client's needs.
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FAQs
01. What is a qualifying R&D project?
In order to qualify as R&D for tax purposes a project must seek an Advancement in a particular field of science or technology through the resolution of scientific or technological Uncertainties.
02. What is a Technological or Scientific Advancement?
Technological advancements can be generally split into three categories:
- Novel – extend overall knowledge or capability in a field of science or technology or create a process, material, device, product or service which incorporates, or represents, an increase in overall knowledge or capability in a field of science or technology;
- Appreciable improvement – An appreciable improvement refers to a significant and demonstrable enhancement in the state of technology or knowledge that goes beyond minor or routine improvements. This improvement must represent a substantial step forward, such as the development of a new product, process, or capability and should be generally acknowledged by a competent professional working in the field as a genuine and non-trivial improvement;
- Duplication – use science or technology to duplicate the effect of an existing process, material, device, product or service in a new or appreciably improved way (e.g. a product which has exactly the same performance characteristics as existing models, but is built in a fundamentally different manner).
Even if the technological/scientific advancement sought is not achieved during the project, R&D tax relief could be still claimed. For further information, please contact us.
03. What is a Technological or Scientific Uncertainty?
Technological/Scientific Uncertainty exists in a situation where there is doubt or lack of knowledge about the feasibility of achieving a specific technological or scientific advancement or outcome. This uncertainty arises when it is not clear whether a particular project or research effort will succeed in achieving its intended objectives due to technical challenges, novel methodologies, or unknown scientific principles. How to resolve the uncertainties should not be publicly available or readily deducible by competent professionals working in the field.
04. What is a competent professional?
A competent professional is someone who is knowledgeable about the relevant scientific and technological principles involved, aware of the current state of knowledge, and have accumulated experience and is recognised as having a successful track record. Simply having worked in a field or having an intelligent interest in it does not, by itself, make a person a competent professional.
05. What are the qualifying costs?
The qualifying costs that might be included as part of an R&D tax claim are:
- Staffing Costs
- Subcontractor costs – might be subject to 65% cap
- Externally provided worker costs – might be subject to 65% cap
- Consumable items
- Data licence and cloud computing
- Software
- Clinical trials volunteers
06. What costs cannot be included in an R&D tax claim?
Some of the costs that cannot be included in an R&D tax claim are:
- capital expenditure
- the cost of land
- the cost of patents and trademarks
- rent or rates
07. Can I still claim R&D tax relief if I do not meet the HMRC definition for SME?
Yes, you might still be able to claim R&D tax relief but under the large company regime – RDEC. For accounting periods beginning on or after 01 April 2024 there will be one merged scheme for both SME and non SMEs. For more information, please contact us.
08. Can I claim R&D tax relief if I have received a grant or state aid?
Although there are some exemptions, generally if you have received a government funding in the form of grant or state aid to conduct all or part of your R&D activities, you would not be liable to claim under the SME scheme. However, you might still be able to receive an R&D tax relief under the large company RDEC scheme. For more information, please contact us.
For accounting periods beginning on or after 01 April 2024 there will be one merged scheme and whether the company has received a grant is no longer relevant.
09. What are the time limits for making an R&D claim?
You can make submit an R&D claim up to two years after the end of your financial year (subject to the company having provided Advance Notification if necessary).
10. When can I make an R&D tax claim?
Your R&D claim can only be submitted with your tax return. Your company’s tax return is prepared at the end of the company’s financial year.
There are instances where it is appropriate or necessary to shorten your financial year allowing for an R&D claim to be made earlier. Please [contact us] if you would like to discuss this.
11. What is an R&D intensive company?
Loss making R&D intensive companies are those having qualifying R&D expenditure of at least 40% of their total spending during a given financial period.
