Research and Development (R&D) Tax Specialists at Jeffreys Henry LLP have secured over £30,000 in R&D Tax Relief for a Soil Association certified skin care manufacturer.
Introduced by the UK Government in 2000, R&D Tax Relief is a key part of the government’s strategy to support innovation in the UK by allowing businesses to reclaim some of the money they have spent on developing a new, or improving an existing, product, service or processes.
R&D TAX RELIEF CAN BE SUBSTANTIAL
Loss-making companies can claim an R&D Tax Credit repayment from HMRC of up to £33.33 for every £100 spent on qualifying R&D expenditure.
Profit-making companies can claim R&D Tax Relief which reduces their corporation tax bill by up to 230%.
Qualifying R&D expenditure includes staff costs, subcontractors, ingredients, materials and equipment used for testing, utilities (power, water and fuel) and computer software.
Our research has indicated similar skin care and makeup brands, including free-from ranges are missing out on thousands of pounds worth of R&D Tax Relief that can help to fund the cost of new employees, equipment or re-invest in further innovation.
Despite the benefits, a very small number of beauty, skin care and cosmetic brands have ever submitted a claim to HMRC because of its perceived complexity and a misunderstanding of what constitutes qualifying R&D activity.