Case Study
D&G Mechanical Engineering

Fiscale focuses on highlighting problem solving capabilities, to create a new income stream for mechanical engineering experts.

Research and Development (R&D) Tax Credits Case Study for D&G Mechanical Engineering

D&G Mechanical Engineering proved to be another prime example of an extremely talented and competent company, who are involved in R&D on an almost daily basis, without realising it. As a result, they are constantly pushing the boundaries designing new and innovative solutions.

From the very first conversation, it was clear that D&G were engaging in Research and Development (R&D). However, our challenge was to ensure that we got to the bottom of every project, to ensure that we did not miss anything that would contribute to their R&D Tax Credit claim.

Established over 30 years ago, this family engineering business has grown organically, and now employs a team of ten full time members of staff. David spends, D&G’s Managing Director, spends the majority of his time on R&D. As an engineer himself, he is supported by a team of fully qualified and highly skilled engineers and fabricators. Their objective is to produce machines and equipment that are at the leading edge of the industry.

Although research and development has been a core part of the business, they had not associated what they do with R&D. Afterall, it was just something that they did to find a solution to problems that they encountered on a daily basis. Therefore. D&G were surprised to learn that there was a Government incentive that compensated them for their efforts. However, they were keen to find out more, from Fiscale, about how they could benefit.

The Challenge

Over the years, D&G has established a reputation as being a problem solver. Each project that they’re involved with starts with them identifying a problem, or a better way of doing something. Therefore, each project starts the process with a blank piece of paper.

Following this, D&G’s engineers will then use their expertise, along with using cutting edge design software, to create a solution. This results in them hopefully finding a remedy to the situation.

Simplicity is a core element of the D&G ethos and is applied throughout all of the aspects of their business. This is particularly evident at the design and development stage.

Once the design has been researched and finalised, the workshop engineers are then called upon to translate it into a reality.

When designing new or improved products, there is always a high degree of uncertainty involved. This is where R&D Tax Credits play their role.

The Results

The introduction to D&G Mechanical Solutions was made through a Business Growth Adviser, from the New Anglia Growth Hub. As a result, Fiscale arranged a meeting with David Bowie, Managing Director at D&G Mechanical Solutions.

During this meeting, it quickly became obvious that the innovative machines designed and built by D&G required a very high level of engineering expertise. However, our challenge was to understand each project well enough to make sure that they were eligible to claim R&D Tax Credits.

Several meetings and a few in-depth telephone calls followed, to ensure that all of the relevant projects were included. When we were confident that no stone had been left unturned, the draft report was compiled and sent to D&G for approval.

The Conclusion

It took around three months, from our initial discussion, for D&G to receive their cheque from HMRC. Needless to say, they were delighted with the size of the cheque that they received.

I think it is fair to say that we have become real advocates of the R&D Tax Credit Scheme. We have recommended it to a number of colleagues, who we think may be eligible. Of course it does take some time to set up but the returns completely justify the effort.

What we do for our customers is highly technical, with no two projects ever being the same. We went through our order history with Fiscale, to explain the details of each one. This was to assess whether the activity undertaken was in fact research and development.

Assimilating all of the information was a time consuming exercise. However, I believe it was a very useful process as we now have a greater understanding of what constitutes R&D. The Fiscale team also have more of an insight into our business. A second claim is underway and it’s proving to be a lot simpler to pull together.

This is the beauty of the R&D Tax Credit Scheme – it isn’t just a one off. As long as we continue to undertake research and development for the solutions we provide, we can continue to claim. In effect we have created an extra revenue stream from just doing what we do.

The team from Fiscale are really lovely and easy to get along with – which is important when you have to work so closely together. From the outset we felt that we could trust Fiscale and were convinced that the time we were investing in analysing our projects would pay off.

David Bowie, MD of D&G Mechanical Engineering Solutions

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