R&D Claims Process

Understanding our easy tax advisory service can help you claim

1

Introductory Call or Meeting

A fully trained R&D Finance Analyst will take 10 minutes of your time gathering preliminary information to see if your company is eligible for an R&D tax credit.

2

Technical Specification Report

Once we have gathered sufficient information which will allow us to draft a technical project report we will provide an accurate identified benefit.

3

Submitting your claim to HMRC

Once the claim application is complete we will walk you and your accountant through the process of updating HMRC. We have had 100% success rate with all our claims.

4

Receiving your R&D Tax Credit

HMRC typically issue their R&D benefit within 28 days of submission. This is dependent on the number of applications and how quickly they work through the backlog. Be excited, reinvest, expand, hire or train more staff, use the initiative to grow your business!

About Counting King

R&D Tax Credit Consultants

ABOUT COUNTING KING

Counting King was established in 2018 and is based in Manchester City Centre, we provide valuable knowledge and support to UK business owners concerning R&D Tax Credits.

We partner with RDS to complete claims in a timely and compliant manner.

We are a small and efficient team who grow organically by saving clients £1000's in tax.

OUR MISSION

To help all UK limited companies in Manchester and further afield claim their R&D Tax Credits for innovative work carried out within their companies.

Allowing them to expand and grow their business by using this as a source of funding.

Helping companies reduce their tax through available channels will only make clients happy and help us grow by referrals!

It's Easy To Claim Your R&D Tax Credit!

A short phone appointment could identify if your company is entitled to claim for your R and D tax credit / relief.

Find out how much you could receive with no upfront fees today!

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HMRC’s SME R&D Tax Credit Incentive

Learn everything you need to know about SME tax credits.

Overview

If your company has fewer staff than 500 and a turnover under £85 million pounds, then HMRC consider you to fall into their SME category, (you can include linked companies if you are part of a group).

HMRC’s R&D Incentive allows a company to deduct an enhanced 130% of their qualifying costs from their yearly profit in addition to the normal 100% deduction which combined makes a total 230% claimable amount for a tax credit or if the company is loss making it can be worth up to 13.5% of the surrenderable loss.

Current Average UK Benefit

Claims submitted for 2017/18 accounting periods have benefitted from tax credits worth over £53,000’s.

Who Qualifies?

As long as you are a UK limited company, Community Interest Company or for larger organisations, have one of these in your company structure, you can claim R&D tax credits.

SME or RDEC Scheme?

If your company has fewer than 500 staff or turns over less than £85 million pounds per year, you can qualify for the more generous SME R&D incentive.

Profitable or Not Profitable

Many companies assume because they are loss making and have no corporation tax due that they are not eligible. This is not the case and we urge clients in this situation so we can advise the various ways in which you can receive the benefit from HMRC.

Allowable Costs to Claim

Maximise your tax credit claim to it's full potential

PAYE Salary

A % of employees time is quantified within your claim. This includes wages, over time payments, bonuses, commissions or additional cash payments.

Employers NI Contributions

In addition to PAYE the employers NI contributions can be contributed towards your R&D claim.

Employers Pension Contributions

Factoring these in as well means your tax credit claim is legitimate but sizable.

Software

Software licences for programs and systems which sole purpose of implementation was related to the project are eligible costs.

Sub-Contractors Costs

Sub-Contractors are a common cost for R&D projects and you can claim up to 65% of their invoiced rates.

Externally Provided Workers (EPWs)

These are employees usually provided by an agency who work under your supervision, direction and control.

Consumables (Materials & Wastage)

Materials, Overheads and any Wastage which was involved in the project.

Pharmaceutical Clinical Trial Volunteers

If you are working in the Pharmaceutical industry then there are certain costs for clinical trial volunteers which can be attributed towards your R&D claim.

Costs Which Cannot Be Claimed

Benefits of buying this product

Market Research

A lot of companies will carry out extensive market research before embarking on a costly project. These costs cannot be part of your R&D claim.

Legal Costs

Legal costs pertaining to R&D projects are not eligible to be accounted for within your claim to HMRC.

Marketing Costs

If your project has been successful or you anticipate it will be, the costs to commercially market your finished product / service are not allowable.

Patent Costs

Patent costs are not allowable under the R&D incentive from HMRC but there is a separate scheme called Patent Box which we can also help with if you are at this stage.

“The increases in enhanced expenditure rates and payable tax credit rates in recent years have made the SME scheme more generous and therefore more attractive to potential applicants”

HMRC , UK Government

Knowledgebase

FAQ's - Common questions and answers

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What type of manufacturing projects qualify for R&D tax relief?

Common examples of product and process development projects that may qualify for R&D tax relief include:

innovative product development using computer-aided design tools;
development of second generation or improved products;
tooling and equipment fixture design and development;
developing unique computer numerical control programs;
designing innovative programmable logic controllers;
designing innovative manufacturing equipment;
prototyping and three-dimensional solid modelling;
designing and developing cost-effective and innovative operational processes;
integrating new materials to improve product performance and manufacturing processes;
evaluating and determining the most efficient flow of material;
designing and evaluating process alternatives;
designing, constructing, and testing product prototypes;
developing processes that would meet increasing regulatory requirements; or,
streamlining manufacturing processes through automation.

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What type of software projects qualify for R&D tax relief?

Here are some useful examples of software development projects that may qualify for R&D tax relief:

creating bespoke software for new projects or creating new functionality for existing R&D projects;
adapting or creating extensions to database software, programming languages, or operating systems;
software development tools, such as tools to port data across platforms, tools for image processing or character recognition;
innovative methods of capturing, transmitting, manipulating, and protecting data;
software to run new computer hardware;
software to run on devices with pre-installed operating systems, such as handheld GPS, mobile phones, and tablets; or,
means of integrating hardware and software platforms.

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What if some of the R&D work carried out was funded by a grant or subsidiary

It really depends on the terms of the grant / subsidiary. If for example you received a grant for £10,000 but you would be eligible for R&D tax relief of £15,000 then in many cases the logical choice would be to pursue the HMRC tax credit route.

We can discuss viable options with you and advise on what would potentially be best for you and your company.

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What if the research and development our company conducted was sub-contracted to us?

If you are conducting R&D on behalf of a client and they are paying for all materials, wastage and prototypes as well as the software licences to develop the product then it would not be eligible.

However, if you are investing in processes to produce a product / service for an end client then this would potentially be eligible and therefore a claim could be submitted.

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How far back can I make a claim for R&D tax credits?

Companies can claim for the current accounting year they are in and also the previous accounting year which makes 2 years in total. This is subject to your financial year end so it is always worth asking if you can claim for multiple years.

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When will I receive the tax credit benefit from HMRC?

HMRC endeavor to settle most claims in approx. 28 days following submission, although this can take longer if a claim is not well presented and supported.

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Am I eligible to claim / How do I know if I’m doing R&D?

Our specialists understand the scheme in its entirety and will help you to establish whether you have an eligible R&D claim. If you are eligible, we will manage your R&D recovery and ensure all eligible costs are included.

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How much will it cost toclaim for my R&D tax credit?

Our fee is only due upon your successful claim. We carry out the whole process for FREE and supply your accountant with the claim details ready for submission to HMRC. We then only charge a Success Fee of 25% when your first claim has been approved (20% for future years – as most companies can claim each year).

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What types of companies are eligible to claim R&D tax credits?

Companies from most industry sectors have made successful recoveries. Providing you are a UK Ltd company and are fixing a problem in a novel way, you’re likely eligible.

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What is HMRC’s R&D Tax Credit Incentive?

It is an incentive set up by HMRC in 2000 to stimulate growth and innovation within the UK economy. It is aimed at UK limited businesses from start-ups to established companies to encourage growth through a potential tax refund / tax credit for any development work carried out. The teams at Counting King & RDS work with you to establish if you are eligible for this incentive from HMRC (with no upfront fees).

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Why do HMRC offer this service?

To stimulate economic growth and investment in R&D, therefore increasing tax revenue. HMRC have calculated for every £1 they give to companies investing in Research and Development, they will indirectly receive between £1.53 to 2.35 in tax revenue. It benefits the economy and makes sound economic sense.

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Average Claim £55,978

Software, Data AI & Integrated Systems - R&D Tax Credits

Creating bespoke programs or applications which innovate and develop a companies systems.
Bridge two systems (or more) together enhancing a companies performance.
Designing a platform for training or customers to access secure information.

R&D Tax Credit Consultants based in Manchester.