Research and Development (R&D) Tax Relief can help classic and vintage car restoration companies claim a generous tax deduction or a cash refund from HMRC.
R&D tax relief is a tax incentive from the UK Government designed to encourage innovation and global competitiveness. The scheme has been around since 2000 and last year over 25,000 UK companies claimed almost £2.9bn in tax relief.
Profit-making SMEs can reduce their corporation tax bill by up to 230%, e.g. an additional £130 deduction on top of £100 spent of qualifying R&D expenditure. Loss-making SMEs can choose to surrender their loss and receive a tax relief by way of a credit – a cash refund paid by HMRC of up to £33,000 for every £100,000 spent on qualifying R&D expenditure.
Qualifying R&D Activities
HMRC qualify research and development as overcoming technological and scientific uncertainties or challenges; aiming at achieving a technological and scientific advance that couldn’t be easily worked out by a professional in the field.
R&D claims are often overlooked because business owners over-estimate the level of innovation required to claim, from experience, qualifying R&D activity can include:-
- Performance enhancing design work – improving rpm, horsepower and fuel efficiency
- Innovative engine rebuild and redesign projects
- Reboring, machining or designing of components
- Developing engineering drawings and specifications
- Performing CAD modelling
- CNC machining
- Designing and developing moulds, jigs, dies and fixtures
- Improving metalwork including casting, welding and grinding
- Design and development of new tools
- Improving product quality
Stating Your R&D Claim
Jeffreys Henry LLP provide an end-to-end service that makes claiming R&D tax credits easy for you.
Our dedicated R&D account manager will work with you to document each R&D activity and split out the qualifying costs. Once finalised, we’ll submit your claim to HMRC’s specialist R&D unit.
Jeffreys Henry LLP is an ICAEW registered accountancy firm giving you peace of mind of a robust R&D claim, with 100% success rate and no multiple year contracts.
