A potentially valuable source of extra income, R&D Tax Credits are a government incentive designed to reward organisations that invest in innovation.
Contrary to popular belief, R&D tax credits are not solely applicable to very high-tech companies carrying out advanced research. Actually, any organisation that spends money developing new products, processes or services, or enhancing existing ones, could be eligible for R&D tax relief.
Organisations spending money on innovation can make a claim to receive either a cash payment or a reduction in Corporation Tax. With the scope for identifying R&D being huge and available in every sector, and given that the average claim is in the region of £54,000, even if the project was ultimately unsuccessful, it has to be worth a look. Also, if you’re making a claim for the first time, you can claim R&D tax relief for your last two completed accounting periods.
However, R&D Tax Credits are a specialist area and are not well understood by most general accountants, and just as if you need major heart surgery you wouldn’t expect your GP to perform the operation but a cardiac specialist, when it comes to R&D tax credits you should seek the advice of a specialist, either choose one with an engineering or technological background.
ZLX is just that, a group of technicians, engineers, and innovators supported by accountants, as opposed to a group of accountants taking advice from technicians.
Technicians are more able to recognise innovation, they take a different slant on things, which means that they are better able to understand the technical aspects of a process and the key areas where innovation may lie.
The Business Post North West spoke to David Purvis, Head of Commercial Business at ZLX, who told them that ZLX can confidently achieve 6+ times more for our clients than a regular accountant. He said accountants are great at what they do, but R&D tax credits are an area requiring specialist expertise. Indeed, he told The Business Post that the thing very many clients say is “why didn’t my accountant tell me about this?”
ZLX will deal with the whole process, from start to finish. We will look at anywhere your business has spent money on innovation, including previous CRM or e-commerce improvements, innovative construction methods, improvements to your stock control systems, even innovative ideas on saving materials and reducing waste which might qualify, in order to identify where a claim could be made. We will draw up the paperwork and follow through with HMRC. Where because we understand the process so well, we have built up a good relationship. The claim will be submitted in a format recognised by HMRC and properly supported by the appropriate documentation. The average turnaround for a claim processed by ZLX is just 6-8 weeks.
Clients are thrilled and always amazed by just how much they are entitled to.
Take our quick Pre-Consultation Questionnaire to find out if you could qualify for R&D tax credits.