Precision Marketing is a marketing agency who offer a wide range of traditional marketing services, that are centred on communication and delivery. Their aim is to help their clients to target the right people, at the right time. As a result, Precision has developed bespoke software applications to meet the needs of their clients, spanning specific industry sectors. As a result of this software, they were able to successfully claim R&D Tax Credits.
HMRC guidelines state that marketing activities are not eligible for relief under the R&D Tax Credit scheme, therefore making any marketing agency unable to claim R&D Tax Credits. However, the team at Fiscale know only too well, that delving a little deeper into a client’s business can often uncover a pot of gold.
Precision Marketing started out as a “one man band”, in 1995, operating from a small home office. Over the following years, they have grown into an agency that employs over 70 full time members of staff and operates from three sites.
To meet the growing demands from their clients, Precision Marketing provide a comprehensive range of direct marketing solutions. These include database and marketing data management, along with postal services, digital marketing, telemarketing and print management. Under their specialist division, Precision Digital, they supply lists of targeted healthcare data along with provide database management. In addition to this, they have also developed patient support programmes, along with offering training programmes for pharmacies.
To successfully claim Research and Development (R&D) Tax Credits for marketing specialists, we need us to demonstrate that our clients were:
Producing new or improved products, processes or services
Design and development of those products involved technological and scientific uncertainty
Precision Marketing have hundreds of clients and work within a diverse range of industries. As a result, the scale of their operation is impressive. For example, they handle the client mailings of over 40 million items each year.
Because marketing is evolving, sophisticated solutions are required to make increasingly personalised for the end consumer.
This has resulted in Precision Marketing developing their own bespoke software applications to create different persona segmentations. Therefore, these bespoke solutions encounter the same degree of technological uncertainties that are faced by any standalone software development company.
As a result, these elements of their service become eligible for R&D Tax Credit relief.
Before being introduced to Fiscale, marketing specialists Precision Marketing, were aware of the R&D Tax Credit scheme. However, like many companies, they did not realise how much of their work was eligible for R&D Tax Credits.
Unfortunately, traditional marketing services do not qualify for R&D Tax Credits. This is because HMRC do not consider them to be ‘science based’. However, Fiscale were aware of Precision’s range of services and felt confident that if we asked enough questions, that we would be able to establish eligibility.
This was indeed the case and as a result of a number of meetings, we had identified a significant level of research and development, for their software solutions. Therefore, making them eligible to claim.
Within two weeks of the claim being approved and submitted to HMRC, Precision Marketing were delighted to received a substantial cheque for their R&D activities. Matthew, Precision Marketings’ Managing Director, was taken aback by the size of the cheque.
Our introduction to Fiscale came at a particularly hectic time, as we were planning our move into a new premises and organising new funding. I am glad that Fiscale stuck with us as the outcome definitely outweighed my expectations! It’s not every day that you receive good news from HMRC!
I know that our case was slightly more complex as our core service is marketing, which is not an activity that qualifies for R&D Tax Credits. However, Fiscale showed a dogged determination to delve deep into the nitty gritty of everything we do and identified that our software development for clients, involved a degree of technological uncertainty. They left no stone unturned and their ability to interpret the HMRC guidelines is impressive!
My advice to any company, whatever industry they are in and whatever they have read or heard about R&D Tax Credits is to speak to Fiscale; they really are the experts.
A short telephone conversation could reap huge rewards for your company!Matthew Caldwell-Nichols, MD of Precision Marketing
Why not contact us today to discuss your business’ R&D tax relief? It only takes our team around 20 minutes to determine if you are eligible or not.