R&D tax credit examples & FAQs

Date: May 4, 2020

With substantial cash payments and tax refunds available, generous R&D tax relief could help your business’s cash flow and be a welcome financial relief. With this in mind, we thought it would be useful to update businesses on how they can utilise Research and Development (R&D) tax relief and show you where Alexander & Co has supported businesses in securing this valuable relief.

Many businesses often miss out on this generous relief because they incorrectly believe that they are not eligible to receive it. Our specialist R&D team is more than happy to review your specific circumstances and advise if you are eligible to claim. There is no cost for the review, and our competitive fees only apply if a claim is successful.

Use our complimentary service to check if you are eligible to claim.

Understanding R&D tax relief

Businesses with a qualifying project may be able to claim R&D tax relief, with many sectors including restaurants and hospitality, being eligible to claim. R&D tax relief encourages innovation and can act as an incentive for businesses looking to grow. Read our beginners guide to R&D to find out more.

We work on a contingency fee basis (though a fixed fee can also be quoted if required) and all R&D consultations are free of charge. Therefore, we only charge if HMRC accepts the claim and you get a repayment or reduction in your liability. The claim will be prepared by a Chartered Tax Advisor and should only require 2 to 3 hours of your time.

Who is eligible for R&D tax credits?

A common misconception is that R&D tax relief only applies to science and technology companies, or those with specialist research and development departments. In fact, all industries can reap the benefits of R&D tax relief, provided the project either:

Seeks to advance their knowledge
Improves a service or product
Solves uncertainties in a process

The project does not need to be unique; there just cannot be a readily available solution. Neither does the project need to succeed.

Claims can also be made where the R&D has been subcontracted out to another party.

R&D tax credits examples secured by Alexander & Co on behalf of our clients

A few R&D tax credits examples from the many projects we have successfully assisted with include:

The development of an easily installable false ceiling by a timber moulding company generated a tax repayment of circa £35,000.
The design of bespoke machinery for two different manufacturers in relation to paper products.
The development of new bespoke software to support a client’s product development, resulting in a tax saving of £267,062.
The development of a unique app by a startup, involving a data investigation system, resulting in a tax saving over £11,000.
An innovative product information system distributed under the SaaS (Software as a Service) model, generating a tax repayment of £42,000.
Several claims relating to new products and processes that clients have developed, where they are either completely new or an improvement on what is available in the marketplace.

Below are just a small selection of R&D tax credits examples secured by our team. It is always worth discussing with us how your business operates, to ascertain your scope for R&D tax relief. For more information, get in touch.

Examples of R&D Tax Relief

Frequently Asked Questions about Research & Development Tax Relief in 2023

Below are several questions that we are often asked before undertaking an R&D claim for a client:

Why is Alexander & Co so cost-effective?

Our R&D tax team is highly skilled in this area. It comprises qualified chartered tax specialists with a deep understanding of tax.

We only recommend you progress a claim if we believe there is a genuine claim to be made and our success rate is testament to this. We do not waste your time with frivolous claims or make any charges upfront. Our efficacy and expertise enable us to keep our fees attractive.

How much of your time will a research & development tax relief claim involve?

All we require is two to three hours of your time to discuss the details of the claim with you. We do all the complicated work, such as dealing with HMRC, entirely on your behalf. Furthermore, we can liaise with you over the telephone, email or video call.

How long will it take to receive a research & development tax relief tax credit payment?

Typically, HMRC will process the claim and make payment within four to six weeks. An R&D tax credit cash benefit will be paid directly into your bank account.

For profitable businesses, your overall Corporation Tax bill will be reduced. If your tax bill has already been paid for the period, a repayment will be received.

For loss-making businesses, an R&D tax credit cash refund will be received.

How can we help you with research & development tax relief ?

Our R&D tax relief specialists can assist with your claim, as claiming yourself can be a complicated and prolonged endeavour. Another bonus is that claims can be made for the past two accounting periods. This often results in a large sum of corporation tax repaid or R&D tax credits.

It is important to find out if you are eligible to make a claim, as you do not want to miss any deadlines and potentially lose out on thousands of pounds.