Assistance with R&D Tax Credits      

Have you considered whether your project could qualify for R&D Tax Credits? 

This valuable incentive can help to reduce the overall cost of working with the University and potentially many other costs you may be incurring as part of your project.

R&D tax relief and credits provide valuable government support for innovative activity by UK companies. The R&D tax incentives are intended for technology development at a practical level enabling not just science based organisations but also engineering and manufacturing companies to claim.

Even greater tax incentives are in the pipeline, so it is worth considering your options now to make full benefit of this scheme.

Benefits include:

• the potential for 'double deduction' from taxable profits for qualifying R&D expenditure which means that the claimant company's net 'after tax' cost of its qualifying R&D could be as little as 45% of the invoice figure
• loss-making SMEs can benefit even though they may not pay corporation tax; they can often surrender their R&D tax losses for a cash repayment of 25% of the R&D expenditure, up to the amount of PAYE and National Insurance paid in the period
• the claim is retrospective and can be made for R&D costs incurred in the last 2 to 3 years
• in certain cases, R&D enhanced tax relief can be claimed where the costs have been funded by a third party - even if there is no net cost to the claimant company
• the incentives apply equally to advances in processes, materials and services as well as products and devices
• claims can be made for aborted / failed R&D work
• companies should be eligible to claim on costs paid for R&D subcontracted out to the University
• the claim process can be quite quick; the tax repayment is often made within a month.

The claim process is quite straightforward but many companies remain unaware that they are eligible.

The University of Exeter has engaged with Hazlewoods LLP chartered accountants to help our contacts check whether they qualify for R&D tax incentives and, if so, to gauge the likely benefit from making a claim.  Hazlewoods' R&D tax specialists have considerable experience in advising companies in this niche area of tax and in preparing successful claims.  They are happy to offer an initial consultation free of charge.  If you would like to discuss this with one of Hazlewoods' specialists, please call us and we will provide contact details.

For further details please see the R&D Tax Relief Factsheet.

If you would like to discuss further or have any queries please contact Jess Hurrell on 01392 726209 or Jess.Hurrell@exeter.ac.uk.