United Kingdom

Research and Development Tax Relief 

Is your organisation missing out on significant cost savings?

 

Many companies are still leaving money on the table by not claiming research & development tax incentives. Research and development has a much wider definition than many people think; you might be eligible for tax benefits and not realise it!

There are two rates of relief, one for larger companies (130%) and one for Small and Medium Enterprise companies (SMEs) (175%).

 

We can help your organisation to obtain the benefits of this incentive.

 

What's on your mind? 

 

  • How to cut costs - Research and Development Tax Relief can help reduce your tax payments
  • How to increase cashflow - as a loss making SME you can exchange some of your loss for payable credits

 

Bringing you peace of mind 


Clients use KPMG to help identify qualifying research and development expenditure, in order to increase tax benefits and potentially save money. This can include:

 

  • Identifying all potentially qualifying research and development activities and discussing these with you
  • Identifying the qualifying expenditure
  • Submitting the claim and handling any negotiation - all information is submitted to HMRC. We will follow up with HMRC on your behalf
  • We provide training for both financial and technical staff to help them identify future qualifying activities and expenditure

 

What's in it for you?

 

  • Improve cashflow by reducing tax liabilities or obtaining repayable credits where relevant
  • Accelerate the tax benefit on eligible capital spend (by several years when compared to other allowances)
  • Confidence that the company is optimising its benefit from this incentive
  • Reduce net cost of research and development conducted in the UK
  • Improve internal understanding of research and development reliefs, establish a claim process and enable future claims to be made with confidence by following our practical advice

 

Why KPMG? 

 

  • We have helped clients prepare Research and Development Tax Relief claims for qualifying expenditure in excess of £3bn across all industry sectors since 2002
  • We have a dedicated Research and Development Tax Relief team which includes scientists and technologists with in excess of 130 years of industrial experience, together with tax and accountancy professionals including the former HMRC lead adviser on the Research and Development Tax Relief
  • We can provide a complete service, minimising the effort required from you

 

Case Study

 

  • We were originally asked simply to review a client's self-prepared claim. During the process, we were able to identify significant additional opportunities. This resulted in the claim being increased from £600,000 to £18m. In addition to identifying these additional opportunities, our specialists were able to overcome HMRC's initial scepticism to agree the claim
  • We prepared a Research and Development Tax Relief claim for a motorsport client. We identified eligible research and development activities and related expenditure of approximately £42m. The after tax benefit to the company was £3.15m
  • For a food manufacturing company, with no method of tracking research and development, we developed a costing methodology. This allowed the client to have a good understanding of how the cost categories could be easily extracted from its systems for future claims. This generated a cash benefit of almost £330,000
 

Contact

David WoodwardDavid Woodward

Partner

KPMG in the UK

 

020 7694 4171

Email David