R&D explained
Imagination. Innovation. Iteration. You do this, and we can help. Here’s how.
WHAT IS RESEARCH AND DEVELOPMENT?
Solving unusual business problems.
Imagination. Innovation. Iteration.
At TCC, we know these are the key ingredients to research & development. But how you explain what you are doing is sometimes as hard as doing it in the first place. That’s where we can help. We specialise in achieving Research and Development Tax Credits for businesses across all industry sectors.
Our unique, one-to-one consultancy approach to client claims delivers the best possible outcome for enterprises of any size – from SMEs to large corporates. A successful claim will generate vital supplementary cash flows for your firm, genuinely reflecting and rewarding the effort and ingenuity you have put into solving unusual business problems.
We work for you directly or, if you would prefer, we also offer the specialist support your accountancy firm or tax advisor often needs when preparing and submitting complicated R&D claims. With the support of our claims expertise and our trusted relationships within the relevant department at HMRC, your R&D is conveyed in the best poss
All this is why TCC are trusted by firms ranging in turnover from £1million to £2 billion to support their innovation and handle their specialist R&D claims submissions, year after year.
WHAT IS RESEARCH AND DEVELOPMENT?
How you claim depends on the size of your company
Small and medium sized companies (SME)
The financial benefit on average will be 33% of the cost of the R&D project.
Fewer than 500 members of staff
Even a company with a large workforce measuring in the hundreds can be considered an SME in R&D terms.
Under €100m turnover or a balance sheet total under €86m
If a firm meets both criteria for its balance-sheet size and its turnover, then it is considered an SME for R&D claims.
Research & Development Expenditure Credit (RDEC)
The large company scheme calculates claims at 12% of your company’s qualifying R&D expenditure
More than 500 members of staff
If you have a very large workforce of 500 employees or more, your firm will automatically classify for an RDEC claim.
Large asset base
Companies classed as RDEC have balance sheets in excess of £75m.
We can help you identify your R&D
No one knows your R&D like you do, but sometimes it is tough to explain. That is why at TCC, we consider ourselves not only to be tax experts — but communicators too.
Your tax-relief submission cannot be a simple matter of form-filling. Only by truly understanding the projects you undertake can the true value of your R&D be conveyed in the language HMRC understands. That is why we pride ourselves on our unique, one-to-one consultancy approach.
In addition to the preparation and submission of your R&D Tax Credits Scheme claim, with TCC, you will have access to:
- a dedicated Client Manager on call
- plain-English bulletins on all government R&D regulations and directives
- a confidential R&D record-keeping service
- R&D best-practice coaching and workshops
- Intellectual-property assessment and advocacy
The purpose of HMRC’s R&D Tax Credits Scheme is to stimulate investment in research and development in the UK economy. We know your R&D is continuously evolving. That is why we maintain an ongoing, year-round relationship with our partners to work not only on their tax-relief claim but also to help facilitate their R&D itself.
With TCC on hand, you will maximise the returns you get both from your tax-relief application and from your finished R&D.
Develop together. It’s the TCC Way
PROJECTS THAT COUNT AS R&D
R&D tax relief can apply to any company in any sector
- A project must seek to achieve an advance in science or technology
- The project can be a new creation or an improvement
- Failure can still count as R&D
The activities that directly contribute to achieving this advance are R&D.
Improving existing processes or products, as well as creating new ones, involves R&D.
Even if the project doesn’t succeed or isn’t fully realised, R&D still takes place.
How R&D might take place in your industry sector:
Aerospace and Defence
Do your projects involve high quality type material finishes? Do you design bespoke products for the aerospace industry using different types of materials?
Alarms/CCTV
Are you breaking new ground in optical surveillance?...
Chemicals, Paints and Adhesive
Are you using new or unusual materials, design processes or manufacturing techniques on your products?
Construction and Building Material
Do you design bespoke and iconic features e.g. façades, staircases, furniture or roofing systems? Are you using existing materials, design processes…
Electronics and Electrical
Have you developed processes or manufacturing techniques that are out of the ordinary? Do you use new or unusual materials in your work?
Engineering and Machinery Design
Do your designs and products involve new or unusual processes, materials or systems? Are you manufacturing products to address new markets?
Materials, Finishes and Construction…
Are you using existing materials, design processes or manufacturing techniques on your projects, but in a new or novel way?
Projects
Are you working to develop new processes or methods? Are you making adaptations to existing software or designs?
Sustainability
Are you seeking sustainable certification on your projects, such as BREEAM, Passivhaus or LEED? Do you design or integrate sustainable systems into your projects?
Pharmaceuticals, Biotechnology...
Are you developing new drugs or administration methods? Are you investigating the structures and effects of viruses or bacteria? Are you working to explore how the body or mind responds to pathogens or other external stimuli?
Testing
Do your projects involve Business Information Modelling (BIM) or software testing, e.g. structural, thermal or wind software modelling?
R&D tax credits are calculated based on your R&D spend
Lots can qualify for R&D tax relief. Work you do in planning, designing, testing, analysing, adapting or creating new products or processes can all count.
- Corporation Tax reduction if you are profit-making
- Cash credit if you are loss-making
- Or a combination of the two
WE WILL DO ALL THE HARD WORK FOR YOU
What we will do for you
Undertake a final review
Undertake a final review of the completed report before sending to client
Prepare and submit
Prepare tax computations and calculation in preparation for submission to HMRC
Complete all checks
Complete final check of all documentation before submission to HMRC
Confim who is submitting
Confirm who is submitting the claim - us or the client’s accountant
Communicate
Communicate with the client and their accountant the expected result and value of the claim
Submit & follow up
Submit the claim ourselves or follow up with the clients’ accountant if they are sending it to HMRC