The initiative is designed to incentivise businesses to invest in research and development, by rewarding them with a reduction in their Corporation Tax liability and/or money back from HMRC in the form of a payable tax credit.
Below is an example of industry sectors that we work with, along with some examples of the types of activities that would create eligibility.
Sectors that we regularly work with for R&D Tax Credits claims
Food & Drink
The Food and Beverage sector is, in our opinion, very under represented when it comes to R&D Tax Credits. In fact, only 0.5% of all SME claims, came from this sector. We explore some of the uncertainties being faced, which would create eligibility for R&D tax relief.
Software
By its very nature, developing new types of software involves a high number of technological uncertainties. As a result, software developers must overcome these challenges on a daily basis, as a routine part of their jobs. Within this article, we explore some activities that would create eligibility for the R&D tax Credits scheme.
Engineering
With nearly 20% of all R&D Tax Credit claims emanating from engineering companies, you would expect for these to be widely known about in the sector. However, we believe that far more companies are able to claim than currently are. Here we explore some of the common technological and scientific uncertainties, that would create eligibility.
Vaping
New and evolving industries are often engaging in a huge range of qualifying R&D activities. Here at Fiscale, we have a number of clients who are developing new products for the vaping industry, ranging from new and innovative flavours and formulas of vaping liquids, along with the atomisers that are required for dispensing the products. Here we explore the types of activities that would create eligibility for the R&D Tax Credit scheme.
Manufacturing
Unsurprisingly manufacturing makes up a large part of all R&D Tax Credit claims. However, our experience shows that many are still missing out on this valuable form of tax relief. We look at this sector in more detail, along with exploring a wide range of examples which could apply.
Construction
The average R&D Tax Credits claim for SMEs within the Construction sector, is currently valued at £50,279 each year. For companies within this space, innovation takes place regularly and in more ways than most would assume.
Agriculture
The latest statistics on Research and Development (R&D) Tax Credits, shows that only 0.8% of all claims made under the SME scheme, were for companies operating in the Agricultural sector. However, innovation is taking place regularly, as we see with several of our clients.
Chemicals
Producers of chemical based products will know just how much testing takes place, while creating new products. In fact, around 20% of all R&D Tax Credit claims are for “Professional, Scientific & Technical” companies. Let’s look at this sector in more detail.
Telecommunications
Companies involved within the modern Telecommunications sector are constantly improving the systems being used. As a result, much of this development would create eligibility for the R&D Tax Credits scheme. As a result, 25% of all claims being made are in this sector and here’re a few examples of the uncertainties being faced.
Health & Wellbeing
Companies working within the Health and Wellbeing sector, are often at the forefront of innovation. Here are some examples of the scientific and technological uncertainties that companies can face.
Furniture
Furniture making falls into the Manufacturing sector, which unsurprisingly, accounts for nearly a quarter of all R&D Tax Credits claims. Here are some examples of what would create eligibility for R&D Tax Credits.
Water & Sewage
The latest HMRC statistics on R&D tax credits, show that only 0.58% of all claims made under the SME scheme, were for companies operating in the Water, Sewage and Waste sector. However, the average claim value is over £40,000.
Call Fiscale Today!
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.