Have you adapted your business to cope during the COVID-19 pandemic?
COVID-19 has seen companies having to adapt their products, delivery methods or every aspect of their business. Where these pivots have developed or adapted an IT system, developed new products or simply changed the materials used, it is likely that the company will be eligible to claim R&D tax relief.
A number of companies have moved to the cloud or developed new online tools to support remote working. This requires advances to be made in an existing IT system so there’s a claim! Other examples include manufacturing companies developing new and improved PPE, and distilleries making hand sanitiser. Where there’s an advance, there’s a claim!
MCS Corporate Strategies is a very specialist company working in Research and Development Tax Credits/ Allowance, Patents, Creative Industries and Grants. Support for research is growing rapidly as Government policy actively encourages companies to take up claims.
The scope for qualifying activity is broader than you might think – and R&D Tax Relief aren’t limited to specific industries or business sectors. Innovation is defined as either the creation of new products, processes or services or the evolution in some way of existing products, processes or services. To claim R&D Tax Relief, you have to be registered as a limited company in the UK and subject to Corporation Tax. Your company also has to be classified as an SME, with fewer than 500 staff and either less than €100 million annual turnover or €86 million gross assets. If you’re a larger company, you would need to submit your claim through the R&D Expenditure Credit (RDEC) scheme instead. Your company needs to be able to provide evidence of qualifying R&D activities and records of the investment made in these activities. Qualifying activities can cover everything from investigating the viability of a prototype for a client to developing and launching a new product or service for your own company or simply modifying an existing process to improve business outcomes. Qualifying R&D expenditure can include direct and indirect staff costs and employee contributions; payments to subcontractors and freelancers; materials, energy and consumables used in the R&D process; and some software costs.
Regardless of the industry you operate within, if you’ve taken steps to develop and grow your business, you could be a claim away from receiving readily available tax relief for your efforts. It’s free to find out if you might qualify – so just give us a quick call on 01926 512 475 or e-mail charlotte@mcs-corporate.com.