R&D Tax Credits in Electrical Engineering
If you are a limited company based in the UK who is involved in the Electrical Engineering sector, there is a strong chance that you qualify for R&D tax credits.
R&D is solving an uncertainty – whether you are missing the blueprints, (the Research) the method, (the Development) or both, the money and time that you put into this work can be claimed back – with HMRC wanting to push and reward anyone who is willing to take the risk of providing something innovative that isn’t certain to be a success. One example of this process would be creating a security system from scratch.
So... what is R&D?
Research and Development is all about uncertainty; if you must create the process of either ‘researching’ and/or ‘developing’ you could be in for a claim.
The average value of a claim in this sector was over £48,000 but many businesses are unaware of this scheme.
Just 5% of eligible limited companies submit R&D claims, resulting in billions of pounds of unclaimed tax relief every year.
What makes me eligible?
- Be a limited company in the UK, subject to corporation tax
- Have carried out research and development into new products or processes
- Have spent money on these projects
What are examples of claimable projects within Electrical Engineering?
Other examples include:
- Designing control systems
- Creating telecom systems
- Designing electrical equipment
- Creating innovative fire control systems
- Researching new uses for materials
- Developing safer methods and practices
These are just a few ideas of what could qualify for R&D; the possibilities are not set-in stone.
The project(s) you’re involved in do not have to be successful. You can claim back on anything that involves trying to solve an uncertainty – as long as you can present proof that the project was going ahead. The money you will claim back will be based on the number of workers you have, the time the project took, and the cost of the actual process.
If you are in the sector of Electrical Engineering and have been involved in creating a unique process, resolving an uncertainty, or anything else which you suspect may qualify due to being an innovation, we urge you to get into contact with us so that we can help you with your claim!
Did you know?
Since the introduction of the legislation in 2002 more than £27bn has been claimed from HMRC
Even where a company is loss making, the legislation is designed to ensure that companies can still receive cash back when conducting qualifying R&D work
There’s no minimum (or maximum) amount that a company needs to have spent on R&D work in order to make a claim for R&D tax relief
Check out our R&D tax calculator
Work out how much your claim could be worth with our easy to use R&D tax credits calculator. Remember we can claim up to two years so make sure you don’t miss out on your innovation fund.
Want to know more? Contact our team today and see how much your claim could be worth!
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