Engineering

R&D Tax Credit Examples, Hints & Tips To Maximise Value
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Engineering

We still can’t get our heads around why companies don’t claim for their R&D! With Engineering being in a sector which receives the third highest amount in R&D Tax Credits (595m) there is no better time to begin your R&D claim.

We know that there are a lot of nuances regarding this incentive but that’s why specialists like ourselves are on the market. R&D is everywhere without you even necessarily realising this. We can conduct a casual meeting with yourself to understand your business, how you operate and what costs you’ve incurred that could qualify.

4 Project Examples

Below are project examples that would qualify for R&D tax credits in Engineering

Counting King Manufacturing Sector Specific R&D

Prototype

Creating a prototype which can help shape and adapt to make engineering more accessible, simpler and improve workflow.

Regulatory Requirements

With regulatory requirements changing frequently, staying on top and changing/updating equipment to meet the new requirements would be seen as R&D.

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Modifying

Modifying equipment so it achieves an advancement and improves your overall process.

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Creating

Creating new materials which provide assistance within construction, this could include creating new or improved tech in buildings that already exist.

Costs Which Don't Qualify

Sometimes the parts you may think qualify, don’t. Here are some examples of what doesn’t qualify in Engineering

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Rent

Rent does not qualify for R&D Tax Credits under any circumstance.

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Prototypes

If your company has developed a prototype but you aim to sell it on to a client, you will no longer be eligible to claim R&D expenditure for that prototype.

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Patent Costs

The cost of applying for a patent 'IP intellectual property' is not able to qualify under R&D Tax Credits.

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Dividend payments

This should be looked at on a case to case basis. It is important to point out that any dividend payments are not eligible for R&D Tax Relief, hence why if your director is very involved within the R&D process, it makes more sense to pay them a salary.

How Much You Could Receive In

Engineering

Use our free calculator today and you could have a significant benefit amount within 28 days!

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Download our R&D Tax Relief Information

Find out how simple it is to claim R&D Tax Credits in engineering

Start Your Claim With Counting King Today!

Don’t hesitate on starting your claim. The government would like to say well done for your innovate hard work so check if you could be entitled to the money they are offering to support your business. With the Counting King simple process, we will go through if you are eligible and if you are we will go through the process and work out the amount you can claim.  It is a process we are experts in and will take the lead on producing for you.

We have you covered!

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Quick Q&A

In short, yes. The best thing to do is to figure out how much R&D you are doing, you should then be able to assign a proportion of your light, heat, water and power that was used for your R&D and amend your claim accordingly. 

One of the biggest portions of claims for the Research and Development tax incentive is circled around staff costs. Whether that might be people directly involved within the R&D or others who might be indirectly involved.

No, you do not need to create a new product to qualify for R&D Tax Credits. Anytime you have attempted an advancement in the Engineering sector, whether this worked or not, could still have the potential to be a qualifying activity.

In 2020, there were a staggering 11,895 claims processed by HMRC for the Engineering sector. On average you could receive £50,021 for your successful claim.

There has never been a better time to put your claim in for the R&D Tax Relief Incentive.

Where do we start? You can claim for:

  • New adaptations to current applications
  • New, bespoke equipment which can vastly improve the work in Engineering
  • Innovating new bespoke ways to adapt to Climate Change
  • A portion of your utilities bill
  • Subcontractors (up to 65%)

Yes! You are able to claim for unsuccessful projects as this falls under the ‘uncertainty’ you faced during the Research and Development you undertook.

Examples of uncertainty for R&D are;

  • Attempting to fix an issue with an application that does not meet the requirements however, being unable to resolve the issue
  • Managing environmental factors, decreasing your carbon footprint during your manufacturing process 
  • If an innovative idea didn’t work as planned but you have still endured costs throughout the development process

Find more about R&D in your sector!

Depending on your company size, you may qualify under the RDEC scheme (Research and Development Expenditure Credit) or under SME incentive (Small Medium Enterprises).

Find out more about your eligibility today.

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