1. with Research and Development Tax Credits
Grow your Business
with Research and Development Tax Credits
Good morning – my name is Tom and I have a brief presentation on how you could use R&D tax Credits to grow your business , and how you could benefit from the scheme.
Thank you to {organisers} from ActionCOACH for hosting the event

2. How would you spend an unexpected cash injection?

3. Coaching & Specialist Advice
Recruitment
Training
New Software
New Equipment
Christmas Bonus!
Expansion
Product Development
Coaching & Specialist Advice
Sales and Marketing
Advertising & Sponsorship
Pay off suppliers
Save for a rainy day
Just some of the possible uses for an unexpected cash amount…

4. With Research and Development Tax Credits, you could make those plans a reality.
R&D Tax Credits are one of several tax reliefs available to limited companies
Supported by HMRC and UK Government
Thousands of companies are already claiming – but many more are missing out due to a lack of awareness or misinformation
This could be costing you thousands of pounds in tax relief or real cash – every year
Grow your business by reinvesting the credit to improve, expand, develop – or however you like!

5. What are R&D Tax Credits?
R&D Tax Credits provides limited companies with tax credit or cash back when they spend time and money on qualifying activities
Introduced in 2000 to increase innovation and create wealth in the UK through R&D
The scheme works through the Corporation Tax System and has been continually improved
Claim up to 33p for every pound spent on R&D
A company incurs cost when carrying out R&D - whether through paying staff, subcontractors or buying quantities of raw material.
The project will either ultimately succeed or fail, but regardless, advance has been sought – the company tried to do something new, or make something better.
It’s in these cases that R&D is being undertaken – and that means your company could qualify for substantial tax credit.

6. For 2015-2016 the R&D SME Scheme saw:
£4.6bn
R&D Expenditure used to claim R&D Tax Relief
£1.3bn
Amount of Tax Credit Claimed
21,865
Claims Made
73%
in Manufacturing, Professional, Scientific and Technical Sectors
Facts interpreted from:

7. How it works Companies invest money and time developing their business
The R&D Scheme rewards this investment in your company by providing tax relief or cash back.
The SME Scheme works by deducting an additional 130% of R&D costs from taxable income, thereby reducing corporation tax due
If the company is making a loss, you can receive a cash payment of around 33p per pound spent on R&D
How it works

8. A huge range of activities qualify - even those that aren’t “technical”
Companies don’t realise that losses can be turned into cash
Eligible companies are in a wide range of industries
HMRC is actively promoting the scheme - they want companies to claim!
R&D Projects are defined as “any project that seeks to further science or technology”
Must seek to overcome a technical or scientific uncertainty
Many companies - and many accountants - believe that R&D has to be technical in order to qualify for the tax relief.

9. What Costs can be Claimed?
Relevant Directors Costs (Gross)
Staff Costs
Subcontractors (65%)
Consumables and Materials
Full Costs of Prototypes
Share of Utilities
Testing
Clinical Trial Volunteers
This list is meant for general guidance – part of our expertise is in identifying costs to claim to maximise the value to the client.
For example a manufacturing company might be able to claim a % of their raw material costs
A range of expenditures can be claimed for
This list is not exclusive
We advise on a case by case basis to maximise your claim
Plant Hire and Machinery cannot be claimed as these are capital expenditure
* Additional rules and criteria may apply.

10. Qualifying Activities
Prototyping and Design
Trials and testing
Failed attempts
Drawings and blueprints
Production
Product Design
Performance Improvements
Software Developments
Algorithm Design
Data management
App Development
New Processes
Integrations
Many others…
A wide range of qualifying activities can be claimed for
We specialise in identifying processes and activities that qualify
Coupled with our specialist industry knowledge we can maximise claims

11. Real world activities
Making products lighter, cheaper or faster to produce
Building and testing prototypes
Increasing strength or durability
Designing, developing and testing new products
Adapting existing technology or materials for a new purpose
Working with new materials
Developing bespoke software and services
Adapting existing processes due to legislation, environmental or health and safety regulations
Reducing waste sent to landfill and other recycling initiatives
Plus many more!
Many companies don’t believe the work they do qualifies as it’s “just what they do”, and this idea could be causing you to lose out on substantial amounts of cash for you to reinvest.
Many clients do not consider they have a claim because they have no final product or solution or a patented product but that is not the case. Any work undertaken to make something different or to make something in different way by changing the process is likely to be an eligible research and development project even if there is not a successful outcome.
Our first question, especially to the manufacturing industry is “what went wrong?”
Ask yourselves what went wrong on any project, any job, and remember the journey you took to solve it. To explain this is to explain development.
R&D is the process undertaken to gain knowledge and apply it for commercial effect – it’s the “eureka!” moment.
r and d is undertaken to consolidate companies market position or even to enhance it.
Often the achievement is simply adaptation rather than  new blown product.

12. Benefits to your business
Claim up to two previous years, potentially resulting in a substantial refund. 01
R&D Tax Credits reduce the cost of future investment – you can be tax effective and make better decisions. 02
Companies can claim every financial year going forwards, helping them to continue to grow. 03

13. Profitable SME Calculation
Amount of Credit: 26% £100,000 of Qualifying R&D x 130% enhancement (£130,000) x 20% Corporation Tax
£26,000 as a tax refund or reduced tax liability
For a profitable SME an R&D claim would reduce its profits chargeable to corporation tax for the period, by the amount of the additional deduction
The benefit will adjust in line with the corporation tax saving – 20% used as it is still in scope for some 2017 claims.

14. Loss Making Calculation
Loss Making SME
Amount of Credit: up to 33.35% £100,000 of Qualifying R&D x 130% enhancement (£130,000) Enhanced R&D = £230,000 £230,000 x 14.5%
£33,350 Tax Credit
If an SME makes a loss in the year in which qualifying R&D expenditure is incurred, the SME can surrender this loss in return for a cash repayment at a rate of 14.5% the additional deduction

15. Case Studies

16. Manufacturing Success
New implosion technology for use in material recycling facilities
Several years in development, using R&D as means to fund the business and reinvest
Company is now in a position to offer a range of products at global scale
Significant implications for the environment and recycling initiatives
What’s it worth?
£817,788
R&D Expenditure
£174,365
Total Claim
Value

17. Eco-friendly Coffee
Made substantial changes to existing coffee roaster to reduce carbon emissions
Pioneered a system designed to encourage recycling from bean to cup
Multiple award-winning company that is rapidly expanding off the back of this work
What’s it worth?
£89,144
R&D Expenditure
£29,729
Total Claim
Value

18. Waste & Recycling Success with R&D
Created a range of commercial products from waste aggregates
Sought to reduce the environmental impact and improve % of recycling
Improved its own profitability and that of its customers
What’s it worth?
£744,854
R&D Expenditure
£145,405
Total Claim
Value

19. Glass Printing Success with R&D
Modification of specialist equipment
Trialing of new spraying techniques and chemical composition
New product development
Enables the company to reinvest in its development and staff training, creating further brand differentiation
£53,000
Tax Credit

20. Heating, Ventilation & Air Conditioning Solutions Success with R&D
Work to improve existing harmful material extraction technology
Made systems more efficient through CAD/CAM and manufacturing  
Cost-saving and health benefits
£19,000
Tax Credit

21. Improving Playground Health & Safety
Innovative design using new materials to improve safety of children’s play areas
Developed enhanced protection to cover to fixings and joints
Improve lifespan of product and durability
£14,000
Tax Credit

22. Customer CRM Development (Various) Success with R&D
Custom coding and implementations of web applications, EPOS systems and 3rd party systems through APIs
Improving performance, cost-cutting, security, compliance
Often off-the-shelf solutions don’t provide all the features needed, so either a custom solution is sought, or extensive modifications are made
Our clients have received in region of:
£3,000 - £45,000
Tax Credit

23. Why work with Aspen Waite?
Proven industry experts
Why work with Aspen Waite?
Hundreds of claims worth millions in tax credit
Successful claims in over 80 sectors
Network of specialists – from manufacturing to computer science, food and healthcare
“The answer is yes, what is the question?” approach
Any client. Any claim. Anywhere.

24.
Offices in London, South West, South, Wales, and along the M4 Corridor