Engineering firm jumpstarts fortunes with R&D tax credits
With more and more small to medium enterprises (SMEs) jumpstarting their fortunes with the Government’s R&D tax credits scheme, PIF talks to Beverston Engineering to find out how this crucial funding windfall benefitted them to the tune of more than £100,000.
It’s official! According to the latest figures from HMRC, more and more companies are now benefiting from the Government’s R&D tax credits scheme. What’s even better news for SMEs is that they’re leading the charge, with an impressive 30% hike in the number of claims submitted in 2012-13 compared to 2011-12.
Encouraging though this is, the 28,500 companies that have made claims under the SME scheme since its introduction in 2000 represent less than 2.5% of all the SMEs in the UK. The vast majority of companies therefore still haven’t caught on to this potentially very lucrative source of additional funding, be that through lack of awareness or concerns over the perceived complexity of the scheme.
Engineering valuable R&D tax relief
Take Beverston Engineering, a world class manufacturer, which specialises in the prototyping and manufacture of state-of-the-art engineering components. One of the more likely candidates for R&D tax credits you would have thought! “I didn’t know whether I qualified,” admits Rod Wah, Beverston’s MD. “I approached my accountant about claiming. We both looked into it and my accountant came back to me and said it’s a very complicated process.”
Jumpstart met with Beverston, considered the complex manufacturing techniques that Rod’s team had developed to produce safety-critical aerospace and pharmaceutical components using exotic materials, submitted a claim, and recovered a significant sum from HMRC.
A surprisingly straightforward process
When the cheque arrived in the post I was flabbergasted, because we were talking over £100,000,” says Rod. “For a process that was surprisingly straightforward, and required minimal effort from us, we were totally stunned at the amount claimed. What a great result!
Since receiving the cheque, Beverston has invested in new machinery and recruited additional staff. Their accountant meanwhile has recommended Jumpstart to some of his other clients, no doubt contributing to that 30% hike in SME claims.
The best people and the best processes get the best results. For a free R&D tax credit consultation, and analysis of the potential returns you might expect, contact the Jumpstart team on 0131 240 2900 or email [email protected].
For more information, please visit www.jumpstartuk.co.uk.
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