2020 R&D Tax Services
The right partner to strengthen your team
R&D tax relief provides a real financial benefit to UK companies. As part of the UK government’s commitment to R&D and innovation, it is one of the most successful mechanisms to support innovation in business.
2020 R&D Tax Services is a partnership between 2020 and GovGrant, who have over 15 years R&D experience and access to a full range of industry experts across the country – with specialist experience, skillsets and technical knowledge.
GovGrant works with thousands of accountancy firms in the UK, who hold themselves to the industry standards that 2020 members would expect, as member of the ICAEW Practice Assurance scheme. GovGrant are R&D specialists and not an accounting practice, making them an ideal partner for 2020 member firms.
2020 R&D Tax Services and GovGrant are delighted to offer 2020 members a free health check service, highlighting your clients who are most likely to benefit from R&D tax relief.
If you want to know more about 2020 R&D Tax Services or have a client who may benefit from R&D tax credits, please contact us using the box below.
GovGrant launches Elevation to empower accountants with R&D and IP
GovGrant have recently launched Elevation, a new tool that allows accountants to take control of R&D tax claims and support them through the process with access to additional expert help and resources as required. Elevation is free of charge to 2020 members.
Elevation will help accountants drive the R&D tax conversation with clients. But more than that it will allow accountants to generate low-value R&D tax credit claims on behalf of their clients.
Why did GovGrant create Elevation?
At 2020 and GovGrant we have seen an increasing number of ineffective R&D solutions being brought to market, it is becoming impossible for businesses, and their accountants, to know where to go for solid, reliable advice when it comes to R&D tax credits.
Taking feedback directly from accountants, Elevation provides them with greater clarity on the eligibility of businesses for tax incentives and gives them full control, visibility, and transparency over a client’s claim journey. The focus of Elevation is on quality and providing the appropriate tools to match the types of client needs while helping accountants to upskill with the right knowledge and guidance on a secure, reliable platform for data transfer between GovGrant specialists and accountants.
In the UK, companies are able to claim tax relief for their R&D activity. The schemes, for SMEs and larger companies, are both administered by HMRC. Typically SMEs get back up to 33% of the amount they’ve spent on qualifying R&D. RDEC qualifying companies could get more than 10% of their R&D spending refunded.
You can claim R&D relief by entering the total qualifying expenditure on the full Company Tax Return form, CT600. Tax relief is given as either a reduction in the tax liability or, if the company is in losses, a refundable tax credit payable as cash on the amount of qualifying R&D expenditure.
For tax purposes, R&D takes place when a project seeks to achieve an advance in overall knowledge or capability in a field of science or technology.
You can claim for your clients against certain costs that are allowable for tax purposes on the project including:
- Employment costs to the company including salaries, bonuses, some reimbursed costs, employers Class 1 National Insurance contributions, employers pension fund contributions
- Subcontractor costs (certain restrictions apply if you are claiming under the RDEC scheme)
- Externally Provided Workers (EPWs)
- Software (revenue costs)
- Consumable items including materials and utilities like light and heat
- Clinical trials volunteers in the pharmaceutical industry
R&D tax relief may reduce your client’s tax bill if their company is liable for corporation tax or, if they make a loss, they may be able to surrender this loss and claim a tax credit. The R&D schemes enables companies with no corporation tax liability to benefit through a cash payment or a reduction of tax.
What is SME R&D tax relief?
Your client is classed as a small or medium sized enterprise (SME): for the purposes of R&D tax incentives if they employ less than 500 employees and have either an annual turnover under €100 million or a balance sheet under €86 million.
Do you think your client is eligible?
- Do they design and make new products?
- Do they seek to improve processes, services, materials or devices?
- Do they make prototypes or perform testing?
- Do they develop software or IT solutions?
- Have they invested in failed projects or developed products that are never launched?
- Do they employ any staff with a technical or scientific background?
With each client you can look at their requirements and decide which resources are needed to deliver a great service. Whether it’s based on skillset, experience or seniority you blend your team accordingly. 2020 R&D Tax Services is a resource that you can use as and when is required.
It’s all about finding the right level of support to strengthen your team when it comes to delivering R&D tax credits. We know your clients are your most valuable asset and having a single resource dealing with a number of specialist areas ensures continuity, comfort and simplicity.
2020 R&D Tax Services can support your current team in a variety of ways, including:
- Partner – a senior level support who would handle the process from start to finish
- Director – a flexible resource that can plug any gaps and act under your instruction
- Associate – a back-up resource to offer training, audit review or specific advice
Are R&D tax credits available to my clients?
We find that companies from all sectors and all industries have the potential to claim UK R&D tax relief.
Beyond R&D tax credits – offering IP services to your clients – October 7th 2021
Details coming soon!
We find that companies from all sectors and all industries have the potential to claim UK R&D tax relief. The notion that R&D is about laboratories and white coats is just too limiting. The definition of R&D for tax purposes is so much broader.
Which sectors are claiming the most in R&D tax relief?