Research and Development Tax Credits/Research and Development

Our team are experts in Areande claims, meaning you can leave the claiming to us while you focus on the innovating.”

What is Areande?

Due to scientific and technological innovation, in 2000, the government developed a scheme that rewards it. This awards tax relief credit incentive companies to research, develop and invest in innovation, hire new staff and ultimately grow

Any money that is spent developing and improving products, services and processes automatically qualifies you for Areande r&d tax relief. This is regardless of your industry, business or sector.

Making an Areande claim allows you to either receive a cash payment or a future reduction to your tax bill. Though, most companies are actually eligible for a claim without even realising.

Tax is a compulsory financial charge imposed upon a tax payer (an individual or legal entity) by a governmental organisation in order to fund government spending and various public expenditure. Failure to pay tax (tax evasion) is punishable by law.

However, you can claim something called tax relief (which is what Areande does) which is a government program or policy initiative that is designed to reduce the amount of taxes paid by individuals or businesses.

You can claim for this, for instance, due to the amount of research and development you or your business does.

Research and development tax credits are a UK tax incentive designed to encourage companies to invest in research and de development. Companies can reduce their tax bill or claim payable cash credits as a proportion if their research and development expenditure.”

Research and development tax credits/research and development

Research and development tax credits are a great way to generate cash for your business.

Another way of explaining research and development tax credit is by seeing it as “expenditure credit" rather than tax credit. This is because tax is often seen as a formal term used for paying the government money; the thought of possibly being entitled to money being returned in tax that you’ve paid is obviously a dwelling thought as nobody wants to be wrongfully claiming tax credits.

So, seeing it as expenditure credits is a much more effective verbal use of the term as this means that there may be various research and developments within your business that requires spending the business’ money to develop or improve its own or other products, services or processes. This could be any business in any industry that does this, therefore the money spent doing the research and development of said business entitles the individual or business to research and development tax credit or “expenditure" credits.

So the research and development expenditure credit is a tax credit, this used to be 11% of your qualifying expenditure up to 31 December 2017. It was increased, though, to 12% from 1 January 2018 and then further increased to 13% from 1 April 2020. So, as of the last 5 months, any extra expenditures that individuals and their business has made, they are eligible to claim up to 13% of those expenditures back; this can be done best by Areande.

How can research and development entitle me to a tax credit?

Areande is recognised as one of the top companies for effectively seeing through a tax credit claim due and will ensure that your claim is upheld and thoroughly dealt with providing all relevant research and development expenditure information is provided. Areande are a dynamic company whose sole dedication is to getting the absolute most out of your claim. | City, county/region, postcode

Why Areande?

Areande is recognised as one of the top companies for effectively seeing through a tax credit claim due and will ensure that your claim is upheld and thoroughly dealt with providing all relevant research and development expenditure information is provided. Areande are a dynamic company whose sole dedication is to getting the absolute most out of your claim.

By Jemma Dixon

If you want more information or you are thinking about making a claim, please do not hesitate to contact is us on any of the following, you could be entitled up to 13% returns on your tax claims! Contact us:

CallAreande today on: 07123456789 | 0800 111 1111

Email Areande on: Areande@website.com

Or visit their website: Areande.com

Everything You Need to Know About R&D Tax Claims

The world of research and development (R&D) tax claims can be quite daunting and difficult to understanding. This guide helps breakdown R&D tax claims to provide you with all the essential information you need.

What is a R&D Tax Claim 

An R&D tax claim allows businesses to claim up to 30% of R&D related costs from the UK Government. The money is paid as a corporation tax refund at the end of each financial year. Businesses can file a R&D tax claim even if a project fails and does not achieve the initial desired outcome.

Qualifying for an R&D Tax Claim

To qualify for an R&D tax claim, you must prove to HMRC that the R&D carried out meets their detailed criteria. This can be broken down into two categories – technology and finances.

Technology

To meet the technology criteria an R&D project must provide an advance in science and technology. While it can be difficult to determine if you qualify, typically things to consider are cost and innovation.

If your project achieves something that others have not achieved or if you acquire new knowledge then it can be considered as R&D. If you spend £100k or more to develop a product in your project then it will likely be considered R&D.

Finances

A key component of qualifying for R&D tax relief is proving to HMRC that you have spent money developing your project.

For your R&D tax claim to be accepted you must prove the money was spent on any of the following:

·         PAYE staff

·         Subcontractor who delivered the project

·         External contractors who were paid a daily rate

·         Materials that were used and couldn’t be sold at full price

·         Software licenses required to deliver the project

It’s also important to note to qualify for a R&D tax claim you must:

·         Have a UK company

·         Must have spent money to build technology that meets the criteria above

·         Spent money during the last two financial years on the project

If you think you qualify for a R&D tax claim you can either contact a specialist to file your claim or you can choose to handle your own claim.

If you decide to process your own R&D tax claim you must take the following steps:

·         Write a technical narrative

·         Put together your financial calculations

·         Amend CT600 and file with HMRC

After a R&D tax claim has been filed, it is passed onto the HMRC R&D unit where the claim is reviewed by an inspector. If a claim is well prepared it will be accepted immediately and you can expect to receive money as soon two weeks, although in most cases it is likely to take 4-6 weeks to process.

If a claim is lacking some details, you can expect to be asked some follow up questions. It is quite unlikely that a claim will be rejected unless it is suspected that you have deliberately committed fraud. In these extreme cases an enquiry will be launched into your accounts and penalties will be imposed.

Although an R&D tax claim can seem straightforward it is usually recommended to contact a specialist to help guide you through the process.

Industrial Buildings Allowance

 In Manchester, the skyline is ever changing and ever growing. Although like metallic trees, cranes occupy the skyline but only to remind us that Manchester is stepping into the future. Areande as always takes the initiative to help with construction of new buildings. Companies can claim an industrial building allowance (IBA) for any building or piece of construction. By doing so they assist with  helping the future of the city.

Thanks to government funding with £100bn in the bank waiting to be put into play, we are excited to see infrastructure commence from 2016 to 2021. This is very exciting for the City as it promotes growth within the City. The Industrial Buildings Allowance began in the 1940s just after the Second World War. From the terrors of war the country had to rebuild itself. Industry was a powerhouse in the 1900s with the amount of factories across the country. The Industrial Buildings Allowance was seen an imperative arsenal to shape the country and future.

Working alongside Areande, the Industrial Buildings Allowance gives companies tax relief on the cost of developing a building. Due to the success this later went on to cover bridges, tunnels, walls.

There are numerous buildings across the City that have claimed Industrial Buildings Allowance with Areande. Innovation is the opposite side of the coin to redevelopment in the City. And along as the company shows promise we support any claim provided (depending on eligibility).

In the last ten years, Areande has assisted in the development of hundreds of homes in the North West from Liverpool to Manchester to Chester. Small companies who show promise towards innovation work hand in hand with us as we do not look what is but what can be.

We spoke to a CEO of one of Manchester’s top building firms regarding the future of the City. “Every month a new building gets approved in not just Manchester but the North West. This is incredibly exciting as we’re able to bring a new depth to this famous City and beyond. The Industrial Buildings Allowance allows us to claim tax relief back from materials and labour. When we worked with Areande their website was easy to navigate around, their eligibility calculator was simple to use and we received our claim in minutes. As we come out of this recession after the Pandemic, looking to the future has never been so important and vital in the recovery of our country.”

Now more than ever we must take these building blocks and try and bring it to something that shapes the future of not just Manchester but the United Kingdom. Supporting businesses, big and small is imperative to the success of the industry and build a road to a steady economy, a grander Manchester and a successful North West.
Tax Relief from Areande and their first class customer care aim to not keep the North West in the 21st Century but beyond also.

A Beginners Guide to Claiming Tax Relief

 If you ask anyone if they enjoy doing their taxes, you’ll probably get an eye roll, a smirk, maybe a sarcastic little snigger. It’s not one of the most enthralling tasks you can get stuck into by any means,however, they have to be done.

Being aware of our taxes, what we’re paying and why will set us up in good stead for the future. You may be eligible for tax relief and so many people out there are oblivious to that, they don’t know that they could actually be claiming tax relief or be eligible for a lot of incentives. If you’re under 75, have UK earnings that are subject to income tax for the tax year and are a UK resident for some of that tax year, then you may able to claim some form of tax relief. You may also be able to earn research and development tax credits.

Tax relief, in layman’s terms, just means that you pay less tax if you’ve been spending on money on business items or are self-employed, (these can be notebooks, pens, printing paper if you’re a writer, photographic equipment if you’re a professional photographer or even things like petrol or travel expenses).

Tax relief can also mean you can sometimes get tax money back or get it repaid in something like a pension fund. If you’re self-employed and you’re completing some form of tax return, then you can also include things such as business premises, stock, material, business insurance, items for marketing purposes and clothing, legal and finance costs are also covered and so is staff costs and subscriptions. Your company can receive tax relief if you have committed to some pioneering new idea, come up with something innovative or are carrying out research and development, as that could earn you research and development tax credits.

To be put simply, research and development tax credits (also known as R&D credits) are a UK incentive designed ideally to get more companies to invest in research and development. Companies can claim and sometimes substantially reduce their tax bills or claim and collect the research and development tax credits as part of the scheme.

When you’re first thinking about the long winding tax information packed road ahead though, trying to avoid any metaphorical roadblocks can be very daunting to say the least. So, here’s a few things you could try if you’re a relatively new addition to the wide world of taxes and everything is getting a little confusing;

1. Do Your Research

Doing extensive research is always so important with anything, but, taking some time to really get to grips with the tax system, what your business is entitled to and how you can go about claiming tax relief if you’re eligible is so vital, especially in today’s climate.

Knowledge is power and once you are equipped with that knowledge, then you can really get yourself in gear and think about where you ideally want your business to go from here. As noted earlier when talking about the research and development tax credits, a lot of people would have been unaware of them or what the importance of research and development was for their business. It is therefore imperative to do some research into what exactly you could be claiming for, what you’re entitled to and what you could possibly be doing to enrich your own ideas and creations within your business. You’ll feel a whole lot clearer about the situation in the long run!

2. Make Listsof Things You Could Deduct Tax From

There are lots of things that you can deduct tax from, and not everyone knows about some of them. It’s worth reading up on the matter, but, once you’ve followed step one and completed your research, it’s a good idea to make a list of things you could possibly include and deduct.

As mentioned before, this can everything from office supplies to business space. Have a real think and note down anything you can think of, that means you are more prepared and focused, it will help you understand and not leave anything out that may be potentially important.

Getting organised is vital and the earlier you do this, the better equipped you feel, the clearer your plan of action will be. It’s also important to jot down whether you think you fit into any other criteria, take a real hard look at sites which offer eligibility checks and tax information help (there’s a great one we will be name dropping in the next step, never fear), see their requirements and write down anything that may be relevant. You may have carried out some extensive research and development but not even realised that it qualified.

3. Sign up to Areande

Sites like Areande are great for beginners, intermediates and tax pros. The site is simple, though, so if you’re struggling a bit in the confusing big, bad world of tax, Areandeis an excellent alternative. The online staff are friendly and there’s always help about for when you’re feeling a little out of depth and a wholelot of confused. You can easily check your eligibility and see exactly how you qualify for tax relief or what next steps you need to take to change your situation. Areandehave lots of helpful blogs and tips on the site too which detail the criteria you need to fit to claim tax relief or to partner with them. It also helpfully sets out what kind of research and development your company needs to be doing in order to claim tax relief. For more information and to check your eligibility for tax relief today, visit the site at https://www.areande.com.

Ways Research And Development Can Help Your Growing Business

With the consistent evolution of technology and the nature of business today, research and development (R&D) has never been more necessary. Technological advancements are proceeding at an unprecedented pace, and without adapting to this near constant state of change, many businesses will get left behind; this is where ‘research and development’ comes in. As a concept, research and development is consistently perceived as a herculean task reserved for the most formidable minds; however, the reality is far simpler and more accessible than many are led to believe. Research and development can simply be understood as the innovative strategies adopted by businesses to develop or improve products or services. By its very design, research and development is exceptionally versatile, and as such, is applicable in most sectors of business and enterprise. It is also known to be particularly beneficial to growing businesses aiming to make a name in their respective industries. Below are just a few ways R&D has been helpful to growing businesses.

1. Unique ProductsAnd Services

Adopting research and development strategies gives your business a chance to stand out; by investing in R&D, your company can improve on what is already being sold, or can alternatively create a new and unique product which is different and more advanced than what is available to consumers. In terms of service, by observing the existing market, you can identify a gap in quality that needs attention and be the solution the consuming masses need. By being the solution to an existing problem, your business stands out, thereby engaging the attention of consumers.

2. Increased Profit

Creating a new product or service, especially one that fills an existing gap in an industry is a sure-fire to create a path to profit. Successful R&D projects have been known to create new and improved products, thereby providing an avenue to boost opportunities for increase in sales of products, thereby increasing income and ultimately, the bottom line. As earlier noted, the nature of business is constantly changing, as such, sticking to old products without room for advancement is a guaranteed way to be left behind when the industry advances;  his leaves a growing business stuck with outdated products. Why choose to be left in the dust when you can be leading the curve?

3. Tax Credit

Did you know that small businesses are entitled to 14.5% and 33% tax credit on qualifyingR&D expenses? While undertaking research and development projects can be daunting and financially risky, there are tax credits in place to ensure that you and your business do not undertake this risk alone. What’s particularly interesting about this is the fact that your business can still claim SME R&D tax credits despite not making any profit. While the ideal scenario is to make profit off your R&D projects, these tax credits ensure that your business is not left behind if immediate profit statements are not forthcoming.

Research and developmentis a concept all growing businesses should be familiar with. Beyond the aforementioned reasons, R&D can embiggen your company’s reputation, provide a competitive edge and even lead to expanding the business. As such, every business – regardless of the sector – is encouraged toexplore research and development strategies and take active steps in adopting them.

Why R&D is a Business Booster

 Research and development or R&D (as is its abbreviation), is the knowledge, development and enhancement that threads through a company and its team. Investing in research and development includes creating new products, updating old ones, enhancing services or elevating technologies. Immersing a company in R&D incorporates many segments of the business, including marketing, cost effectiveness and business strategy. 

But why should a company invest in research and development? How can it boost a business?

-Productivity-

R&D can catapult companies beyond their competitors because the productivity it can lead to is not easily matched. Often, research and development can improve the product or process that the business relies on, by making it more affordable or more fruitful. This makes the business more likely to prosper and overtake any competition.

-Marketing and advertising-

In certain businesses, R&D can be the best marketing tool because customers are always on the lookout for that shiny, new product or service. Honing in on research and development, in whatever scientific or technological bracket best suits your company, can be the best advert for your business - emphasising your brand new process, or a technology that’s never been seen before. In fact, putting together an artistic and creative marketing campaign regarding the delivery of a new product (or an updated product) can boost interest and, therefore, sales by an incredible amount.

-Tax relief and credit-

Engaging your business in research and development opportunities can entitle you to R&D tax claims or R&D credit, of which Areande can help you with. If you’re pouring business money and time into improving and developing products or processes, Areande can help you make a claim to receive a cash payment or a reduction in your tax bill. So, your business will be booming without the extra costs. Let us help you, help the economy!

-Morale and mood-

The mood and team spirit within a company is vital for its growth. A company cannot flourish if its employees are not happy. And with a focus on research and development, it would be almost impossible for your team to lose morale. If company employees know that their employer is always doing what’s best for them and the business, providing them with the resources and programmes to learn more and hone their skills and keeping their interests peaked then the spirits within the business will be high. As R&D is also likely to boost business sales then employees are increasingly likely to receive a bonus too - which is always a lovely incentive!

Many of the different angles of why a business should immerse themselves in research and development are clear. And R&D isn’t just about creating new and updated products. It can be research towards a new product or a scientific and/or technological means.

Overall, R&D can enhance your company’s advertisements and marketing, bring costs down, boost productivity and keep your employees happy. So, why wouldn’t you?

Contact Areande today to be rewarded for your company’s innovation!

How Your Small Business Can Survive Covid 19 Through r&d Tax Credits and Relief

 Industry is going through a difficult time with the onset of Covid 19. To some extent production has ceased and growth has been stunted. There are reports of many UK companies going into liquidation and laying off staff despite the government helping employees and employers through the furlough scheme.  However, for those determined to survive they should be committed to not standing still. Now is the time to look to the future and determine where growth can be gained.

The UK government are fully committed to helping small and medium sized companies survive the current crisis by offering further financial packages. In particular those sme companies who are themselves committed to r&d. In April 2020, not long into a countrywide lockdown, the Chancellor announced there would be £750m in grants and loans for sme's with a single-minded attitude to research and development.

On top of that are existing tax incentive schemes aimed at sme research and development. One is known as the sme r&d tax credits scheme. It enables small and medium sized companies to have those costs acquired during research and development to be offset through sme r&d tax credits and incentives. This is a big deal to those companies seeking a way through the current crisis.

Sme r&d tax credits allow small and medium sized companies to claim relief or credit between 24 & 26% of their r&d expenditure. This could make a huge difference and when added to other loans and grants they can help secure a companies future.

However, the sme r&d tax credits scheme does have certain conditions and requirements especially when defining a small or medium sized business or enterprise.  A sme must not have more than 500 staff and have a turnover of less than £100m (or there about) and have assets not exceeding £86m. This gives tax relief and credit to thousands of UK companies, including start ups who are determined to survive, grow and prosper through research and development.

Even if a small business is running at a loss, which would not be surprising given the current economic climate, sme r&d tax credits can be claimed up to 33%. Provided there is evidence to show the company has been involved in some form of research and development. Covid 19 may have put a stop to such r&d but even still a company can claim sme tax credits for aborted research and development.

To claim these sme r&d tax credits companies are recommended to contact specialist firms who have the expertise in dealing with r&d tax incentives, relief and credit. It can be a complicated process but one that will benefit the company greatly.

No company needs telling they are in the midst of hard times. What they need is hard hope, hope that comes with a practical answer. Sme r&d tax credits and other forms of relief the government has announced will ensure that UK businesses will not only survive but will continue the belief that the UK is at the forefront of innovation.