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Could you claim relief for R & D?

Gary Hughes

Special Projects Manager
14/03/2019

Zeta-pdm Ltd have a turnover in excess of £3million. Hallidays were recommended to support them to reduce their corporation tax by claiming for R&D expenditure.

The company was paying corporation tax but had not previously claimed the tax relief available for R&D. This reduced their profits and restricted the growth of their business. Their accountant and board had limited experience in this field and were uncertain whether any expenditure qualified. This made them unsure about the tax regulations and reluctant to devote any time or effort to preparing a claim. Zeta-pdm Ltd needed guidance to identify the key financial information, to produce the case and supporting evidence, and then to deal with any queries arising from HMRC.

Hallidays’ R&D team carried out a review and advised what could be included in the claim. This provided them with the confidence that making a claim would be worthwhile. We worked closely with the company to identify the financial and operational information required by HMRC. Subsequently preparing the claim for submission which saved them valuable time. Hallidays provided the company with the reassurance that was needed, showing that the tax claims were in expert hands. As a result, the company received a refund in excess £52k for a two-year tax period.

All of the technical activities identified by Hallidays were accepted by HMRC as eligible to include. Hallidays identified qualifying R&D expenditure of just over £200K. With the refund in excess of £52K, the company reinvested in growing their business. The company now has a clear understanding of how to make a claim for R&D expenditure which will enable them to reduce their corporation tax year-on-year.

Stephen Turner, Managing Director of Zeta-pdm Ltd said: “We were liable to pay corporation tax at the full rate, we had never claimed relief for R&D until Hallidays advised us to do so. They worked closely with us, providing the specialised support to prepare the claim and to resolve queries. We were very pleased to be able to re-invest the 52k tax refund into growing the business.”

Disclaimer:

The information contained herein is of a general nature and is not intended to be received as formal professional advice. Whilst we endeavour to provide accurate information, there can be no guarantee that the information is accurate as of the date it is received, or that it will continue to be accurate in the future, due to legislative changes. It is therefore important that before you act upon any information contained herein you seek appropriate professional advice to take account of your exact circumstances.

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