Eligible companies can claim R&D tax relief/rebates every year, but thousands do not because they’re ill-informed about the scheme. You wouldn’t fail to apply for a tax rebate every year because you know it’s your money, and this is very similar in many ways, it is your money but you do have to apply for it.
So what are the main reasons companies don’t use the scheme?
‘We don’t do any research and development’
What you consider R&D and what HMRC considers R&D are often two very different things. You don’t have to be wearing a lab coat or inventing a time-machine. Many day-to-day tasks involving design or facing on-site technical challenges qualify as R&D. Scaffolders having to re-engineer their scaffolding on complex layouts or historic buildings for example qualify for R&D. Electricians having to figure out difficult cabling runs or working to BREEAM standards qualify for R&D. Roofers working with new materials and systems qualify for R&D. There are many areas where commercial construction companies qualify that they simply aren’t aware of.
‘My accountant can do it’
This isn’t a swipe at accountants at all, but they simply aren’t qualified for this. The justification to HMRC needs to be incredibly technical, understood and written by technicians with on-site experience, with a full understanding of the challenges YOU face, along with an in-depth understanding of the HMRC scheme itself. Typically, the rebate value of claims put together by accountants is 20% of the value of those put together by specialist companies like Harmoney Consulting Group.
‘I haven’t got time’
If you haven’t claimed before, you can claim for your past two financial years in one go, then do it annually. It is the job of a company like Harmoney Consulting to do all of the work for you, only aiming to take an hour of your business time to complete and submit your application for your rebate. The money we have got back for our clients ranges from £15,000 to £2,500,000, so unless you earn £15,000 – £2,500,000 per hour, you can probably skip a lunch break to get the ball rolling on this.
If you have any questions or want to see if you’re eligible, contact firstname.lastname@example.org