NOT
Business Solutions (Midlands) Ltd
Mark Paul

• Government attempt to boost UK R&D
– Launched in 2001 – over 74,000 claims submitted and over
£9 Billion of relief claimed
• Under used – <10% of eligible companies claiming
• Companies involved in creating new / improved products or processes
• Degree of novelty – not necessarily Patentable or
‘blue sky’ in lab coats!

• Since the R&D tax credit schemes were launched in 2000‐01 up until 2013-14, more than £9.5 billion in tax relief claimed.
• By the end of 2013-14, more than 28,500 different companies had made claims under the SME scheme
• The total number of claims rose to 15,930 for accounting periods ending in 2012‐13: an increase of 26% compared to
2011‐12 .

• The SME Scheme
– Extremely attractive for the SME community
– Fewer than 500 employees and either:
• Balance sheet <€86M
• Annual Turnover <€100M
– 2001: 50% of eligible expenditure against
Corporation Tax
– 2015: 130% of eligible expenditure against
Corporation Tax
– 2012: requirement for a minimum expenditure of
£10,000 removed

• What type of “R&D” is eligible
– Product development not carried out anywhere else
– Process development
– Software development
• What type of “R&D” is not eligible
– ‘Bespoke product’ not necessarily R&D
– ‘Design’ in it’s own right
• Its all about Technical Uncertainty…

• Employment Costs
• Materials, including prototypes
• Sub Contract Costs
• Utilities
• CT600’s & Tax
Computations
• Detailed Technical Report

MY
• Are you undertaking projects to achieve an advance within your industrial sector through the resolution of technical or scientific uncertainties?
• Can you clearly identify the advance that you are seeking?
• Can you state why the uncertainties are not able to be resolved by a competent professional?

• Interpretation of Qualifying criteria
– Companies fail to recognise which costs are eligible
• Changing legislation
• Generation of robust documentation
• Time required to bring claim together
• Knowledge of the process to make a successful claim
• Projects funded by grant funding streams:
• TSB, KTP etc

Scientists / Engineers – Not Accountants
Stage by stage hand holding though the entire process
Our average claim is circa £62K compared with circa
£43K national average
Over £4.5 Million reclaimed for our clients since 2011
100% success rate

• Leading UK based Printing Company, Bristol
– £349,000
– Process innovation
• Jewellery Manufacturing & Refining Company, London
– >£150,000
– Product & Process Innovation
• Engineering Company, Birmingham
– £75,000
– Product & Process innovation
• West Midlands Software Company, Redditch
– >£120,000
– Internally Focussed Product innovation

• Business Benefits
– Achieving significant cash benefits in excess of £120,000
– Not just about the development of innovative products for their clients. Internal business innovations also eligible
– Realising that there is an ongoing tax benefit by undertaking new and innovative projects
– Being able to invest in new equipment and technologies to further enhance their in-house capabilities

How much additional product would your company need to sell to generate an extra £50K in bottom line profits???

Visit www.bsmidlands.co.uk
for more information
Mark Paul mark@bsmidlands.co.uk
07896 115003