R&D Tax Credits - Engineering
There is a lot going on in the engineering industry and big changes are on the horizon, which is why R&D tax relief is so important. Many businesses in the engineering sector can take advantage of R&D tax credits and the process is simple, especially when you have RDS on side.Speak to us
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Until the claim is successful
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Average UK claim amount
R&D Tax Claim for Engineering
Back in 2000, HMRC introduced the Research and Development Tax Relief Scheme, which has gone on to help a large number of engineering businesses.
R&D in engineering is there to support eligible businesses that are working on innovative projects, especially those related to science and technology, by providing refunds and credit against corporation tax. By doing so, businesses are able to focus on revolutionising the industry.
At RDS, our expert team is on hand to help you to establish whether your business is eligible for R&D in engineering. If you are, we will work on a ‘No Win No Fee’ basis to guide you through the qualification process, resulting in a successful claim. We know how complex R&D tax claims can be - especially if you don’t have a lot of experience with how the process works for engineering - and so we dedicate time, effort and resources to making things as simple as possible.
Discover your potential claim value today
Use our handy R&D tax relief calculator to find out how much you could be claiming back.R&D Calculator
What activities qualify?
Please find below a few examples of activities that qualify as R&D expenditure in engineering.
Improving existing engineering techniques & processes to make them more efficient.
Conducting research aimed at reducing the environmental impact of engineering systems.
Designing & developing efficient and innovative engineering processes.
Modifying equipment and processes to align with current regulatory standards.
Exploring and experimenting with new materials to provide unique solutions that cater to client needs.Learn more
What can you claim?
Please find below what you can include in your R&D tax relief claim.
Staff costs including salaries and expenses.
Subcontractor and freelancer costs.
Consumables (materials used up during R&D and utilities).
Software directly employed in the R&D activity.
Travel and subsistence expenses.Learn more
Our Claim Process
Report & Sign Off
Frequently asked questions
Below are some of the most frequently asked questions we get regarding making an R&D tax relief claim. If you have any more questions please contact our team.
R&D tax credits is an incentive where UK limited companies can receive a reduction or rebate on their CT for funds spent on eligible R&D activities. This incentive was established by the government in 2000 and has continued to support businesses of all sizes and sectors to grow.
No, you do not need to create a new product to qualify for R&D tax credits. For instance, you can make significant advancement or appreciable improvement to existing machinery, in a manner that promotes efficiencies within your sector.
Yes, you can claim for unsuccessful projects if you can demonstrate that an advancement was sought, and you attempted to overcome the ‘uncertainties’ you faced during your research and development endeavours.
No, we do not bill you until you receive your benefit from HMRC. The relationship we build with our clients is based on the principles of trust and transparency. Therefore, the benefit is paid directly to you before you pay us for the services rendered.
For many firms, the prospect of R&D can seem daunting and extremely complex at first, therefore RDS aim to make the process as simple and straightforward from the onset.
Step 1: A 15-minute conversation with the Business Development Team, to discuss eligibility.
Step 2: Signing of the NDA/ client agreement, dictating the terms and conditions of our service.
Step 3: Arranging and undertaking a Project Technical Report call with your dedicated financial analyst. This will entail evidencing your developmental endeavours and apportioning financial calculations to support your application with HMRC.
Step 4: Reviewing compiled information to ensure you are completely satisfied with the information collated prior to its submission to HMRC.
Step 5: We actively monitor the status of the application to ensure that any benefit is realised within the anticipated timeframe.
HMRC aim to process payable credit claims within 28 days of receiving them. However, processing time can be affected by aspects such as, time of the year. There is a general increase in demand for months like March and December.