The R&D tax credit scheme is unique for a number of reasons. Unlike grants,
it pays out after R&D is conducted, and unlike business ventures, credits
are paid out even if the research fails. Also, unlike traditional tax claim
procedures, HMRC requires companies to involve staff with an understanding of
science in making successful applications.
It is easy to see why companies often find it difficult to make
successful claims. Internal financial controllers often have expertise in the
taxation system but not in the science that makes the company tick. On the
other hand, the company’s technical experts may understand the science behind
their company’s products but often have limited exposure to the financial side
of the business. Unfortunately, however, any lack of interaction and
cooperation between the two groups can have disastrous consequences when it
comes to making and defending an R&D tax credit claim.
Jumpstart facilitates the interaction of these two business disciplines
in order to make robust, accurate and successful claims. By collecting
technical information on the company’s projects and using this as the focus of
the cost collection, in all cases we aim to satisfy HMRC that the claim has
been compiled with the input of both financial and technical staff. More
details on this approach, and its results, can be found at http://www.hultonassociates.com/
Author - Laeticia Guillard
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