Preston based R+D Tax Experts by Haleys has reached a significant landmark. Between July 2016 and March 2017 the total value of R&D tax credit claims on behalf of clients reached £1Million. That’s £1Million claimed under the Government’s R&D Tax Credit scheme and it’s money coming back to SMEs in the North West that they can reinvest in their businesses.
Many prospective claimants believe that the scheme is too good to be true or simply not for them. That R&D is the domain of development engineers, scientists and manufacturers, essentially those involved in creating new products. A number of clients had previously discounted the Government’s scheme believing that it wouldn’t apply to them. Michael Hardicker of Vantage Motorhomes, specialists in luxury panel van conversion motorhomes, says, ‘Following on from my successful acquisition, R+D Tax Experts by Haleys brought to our attention R&D tax credits that had not been claimed by the previous owners. Following site visits and numerous conversations we were able to submit an R&D claim and have it accepted. This has resulted in a significant five figure sum being received by the Company and it has opened our minds to the possibility of future benefits from enhancing our product range.’
Haleys Business Advisers set up the specialist division, R+D Tax Experts by Haleys at the end of last year to help North West businesses take advantage of funds that are available to them from the Government for research and development. ‘We were regularly making successful five figure claims for clients and that prompted us to explore the whole area of R&D. The decision was made to create a dedicated team to work specifically on the R&D Tax Credit scheme,’ explains Phil Hartley who heads up the R&D team. ‘There are so many businesses missing out. We know that the North West is home to an incredible number of innovative businesses and we are convinced that a lot of them just aren’t aware of what is available to them. We also know from experience that many entrepreneurs and SMEs are so stretched in their day-to-day business activities that it’s easy to miss this type of information. Other businesses make the mistake of thinking that the scheme is only aimed at manufacturers and areas more traditionally associated with R&D but the scheme is for any business that is improving their capabilities, and not just for new products.’
Another common misconception among businesses is that the R&D Tax Credit scheme applies to large multi-nationals, whereas there are thousands of SMEs whose R&D projects do qualify. ‘The average claim varies but essentially it represents up to 26% of money spent on R&D,’ says Phil Hartley.
Funds for the scheme continue to increase and the Government has pledged an additional £2 billion more per year in research and development funding by 2020-21.
