R&D Tax Credits Explained

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  • How does it work?
  • Why claim R&D tax Credits?
  • Am I Eligible?
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Counting King is owned and managed by experienced tax professionals. Focussing purely on the R&D tax credit incentive we are uniquely placed to assist you and your accountant to identify and submit the maximum eligible amount.

Counting King Limited is owned and operated by experienced tax professionals that focus purely on the R&D Tax Credit Incentive. Due to the Director’s combined experience, we are uniquely placed to assist your company to identify and submit a maximised R&D Tax Claim.

We specialise in the following areas

Software Development
Average Claim Value £63,296
Agriculture
Average Claim Value £45,045
Professional, Scientific & Technical
Average Claim Value £77,153
Manufacturing & Engineering
Average Claim Value £50,021
Construction
Average Claim Value £57,283
Transport & Storage
Average Claim Value £48,193

Find out how much you could receive in 4 easy steps

STEP 1:
Discovery Meeting

This meeting can be conducted in-person or over the phone. During this meeting, we will talk you through the incentive and establish whether the work your company has carried out qualifies under the R&D Tax incentive. We will also outline our work processes and what you should expect.

STEP 2:
Technical Meeting and Report Drafting

We visit your site and interview key personnel to get a full understanding of your businesses operations and gather the technical details of the development work undertaken in the period(s). We will also go through the financial aspect of the claim with your company’s finance function to get up-to-date financial data for analysis.

STEP 3:
R&D Benefit Analysis

We analyse all eligible costs and calculate the maximum benefit available based on accurate and up to date data. From here we can explain how much you can expect and in what form you can expect the benefit based on your company’s tax position.

STEP 4:
HMRC Processing & Actioning

Following an internal review of the compiled claim, we aim to submit the completed documents to HMRC within 2 weeks of receiving all the required information. HMRC aim to process payable credit claims within 28 days and pay out the benefit. In the event that HMRC require additional information relating the claim before the processing can be completed, we will oversee the process and work with you to answer any additional questions. We also work with Ex-HMRC consultants and IP Lawyers to streamline this process and minimise the impact on your business.

HMRC will process a reduction in liability instantly (once submitted). Payable credits are issued typically within 4 weeks either by cheque or bank transfer.

We’ve got you covered!

100+
Companies Helped Already

£55,000
Average claim value

11+
Years of experience

R&D Tax Credit Calculator

The R&D tax calculator will help you to estimate the potential cash value of your research and development activities.

SME Scheme

Based on £100k of R&D Costs you could potentially receive:

  • £24,700
    (If Profitable)
  • £33,350
    (If Loss Making)
Start SME Claim

RDEC Scheme

Based on £100k of R&D Costs you could potentially receive:

  • £10,530
    (Processed as an Expenditure Credit)
Start RDEC Claim

What are the key benefits of R&D Tax Credits?

R&D Tax Credits can be a valuable form of funding for businesses of all sizes undertaking eligible activities as a one-off or as part of their day-to-day workflow processes.

Cash injection

R&D Tax Credits can provide a vital cash injection to UK Limited Companies of all sizes, to not only continue their eligible activities but to enhance their efforts and enable organic company growth.

Increase Competition

The UK is known as a leading country in innovation. This incentive encourages UK Limited Companies of all sizes to become more competitive on the world market. Following the decision to leave the EU in recent years, it has become more important than ever for the UK to remain at the forefront of technological and scientific advancements.

Boost Innovation

R&D Tax Credits are designed to encourage and promote innovation. Companies who may not have thought about R&D in the past can now receive the added benefit of tax credits. Companies who regularly carry out R&D as part of day-to-day activities can continue to and enhance their qualifying activities with this added benefit.

Economic Growth

For every £1 that is spent on R&D related projects, generates a net return of £2.65 for the UK economy. This type of stimulus generates greater benefits for HMRC in terms of economic growth.

Is my business eligible for R&D Tax Credits?

If your company undertakes challenging projects that encounter challenges and uncertainties that need to be overcome using technological or scientific principles or solutions, you will likely qualify under the R&D Tax Credit Incentive.

Examples of qualifying projects:

  • Developing an enhanced version of a physical product that is currently on the market.

  • Designing and coding a novel application that alerts you to dietary requirement friendly restaurants nearby to your current location.

  • Using materials in a new way to achieve greater efficiency or functionality.

  • Development of unique products to deliver state-of-the-art facilities.

  • Developing completely new technical features, functions which are currently unavailable.

  • Designing and manufacturing a product to overcoming issues that are presented within a specific industry (gap in the market).

As per HMRC’s guidelines, a project does not have to be successfully completed for it to be classed as qualifying under the R&D Tax Incentive. Failed projects, whereby the technical uncertainties could not be overcome can still qualify under the incentive as long as the work carried out falls within the criteria.

Which area of the HMRC incentive is right for me and my business?

There are two sections to the R&D Tax Credit incentive from HMRC which your business will fall into:

Still unsure which incentive if right for you?

Our results

  • We have already helped over a hundred companies benefit from the R&D Tax Incentive, accounting for over £2million in benefit to our clients.
  • Trusted and respected advisors on hand at every step of the application to ensure you are always 100% comfortable.
  • We hire Ex-HMRC Consultants & IP / Patent Lawyers to ensure our work is of the highest standards
  • We partner with respected organisations such as the Growth Hub & Multiple Local Authorities as they trust the standard we set.

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R&D Tax Credit FAQ’s

Research and development tax credits is an incentive where UK Limited companies can receive a reduction or rebate on their corporation tax for monies spent on eligible R&D activities.

The research and development (R&D) tax credits incentive was established by the Government in 2000, supporting businesses of all different sizes to grow and helping the UK economy to grow through innovation.

Knowing which projects actually qualify for R&D tax relief (and those that don’t) and what expenses can be claimed (and those that can’t) are the areas where most companies are looking for advice. This is important to maximise the claim value.

What CAN be claimed for:

Utilities (Gas, Electricity, Water).

Salaries and Wages.

Employer’s NI Contributions.

Employer’s Pension Contributions.

Materials and wastage consumed during the project.

Prototypes created.

Subcontractors invoices.

Software Licenses.

Once the application has been produced and finalised by yourself, it is uploaded and submitted with your corporation tax return. As soon as HMRC receive the information it is sent to the specialist incentives unit whereby it is treated accordingly.

The supporting information and calculations submitted are reviewed and processed within a timely manner. Tax reductions are processed immediately and will show up within 24 hours. Tax repayments or payable credits are issued within 4 weeks and depending on the method chosen, you can expect a bank deposit or a cheque in the post.

Case study: Manufacturing firm which was told they wouldn't qualify secures vital funds.

After approaching another R&D firm, they was advised they didn't qualify and nearly gave up! Here's how our easy yet effective approach works.

Read case study Start your claim