Research and Development Could Create Cash In Your Business

Looking for a cash injection to fuel your expansion plans or ease your cashflow? The answer could be right in front of you, within your own business in fact.
You just don’t know it yet!

Discover hidden cash for R&D

Research and development

If, like many engineering operations, you’re involved in some kind of research and development – be it prototyping, development or experimentation with materials or physical production processes – you could be entitled to potentially lucrative tax benefits. And the more R&D activity you’re involved in, the more you potentially stand to benefit from the Government’s generous but massively under-utilised R&D tax relief scheme.

Introduced by the UK Government in 2000, the R&D tax relief scheme is designed to encourage innovation and global competitiveness in UK engineering and technology by allowing companies to reclaim money invested in qualifying R&D. It’s one of the best ways of unearthing hidden cash reserves within your own company. And we’re not just talking about a few pounds and pence either. Jumpstart, the UK’s leading technical R&D tax relief specialist, alone has helped companies throughout the UK claim a combined total of over £43.5m in tax benefit! All on a no-win, no-fee basis.

What qualifies as R&D

So what counts as qualifying R&D? Well, every time you change the shape of something from one state to another, for example, or have to assemble two pieces of technology, there could be a technical challenge to overcome. Frustrating though these technical challenges may be, if by resolving them you create a new and more efficient way of doing what you do, then there’s a good chance you’re entitled to tax relief on the associated costs.

The travesty is that “approximately 9 out of 10 businesses either don’t claim at all or don’t claim enough,” says Brian Williamson, Managing Director at Jumpstart. Scottish-based Clyde Blowers Capital is one of the 10% or so of enterprises taking full advantage of the scheme.

How some of the customer benefited from R&D claims

“My company has benefited enormously,” says Jim McColl OBE, Chief Executive and Chairman of Clyde Blowers Capital. “If everyone made use of the services of Jumpstart, then the UK economy… would be so much healthier. I urge all to follow us, and get what is, after all, rightfully theirs. It’s about economic impact and it is in our hands.”

“In our hands” indeed! Consider for a moment how hard your company works to maintain output, stay within budget and get product out the door, right first time and on time. Now imagine if you could still do all that AND reduce your costs significantly. On average, Jumpstart has found that engineering companies can recover up to 25% of their R&D costs, and often in cash. Surely, it’s everyone's responsibility to unearth this hidden finance and get the reward that the engineers of the UK deserve.

Doesn’t the very mention of tax have you reaching for the phone to your accountant though?

Not with this kind of tax, no, because R&D tax relief is first and foremost a technical area, requiring a special combination of skills. Recruited for their technical expertise and promoted through the Jumpstart Academy, Jumpstart’s analysts are the ultimate hybrid – highly qualified technical experts who also have an unrivalled understanding of the complex R&D tax relief legislation involved. And it shows!

Take Craig Clark, Founder and Chief Executive of Clyde Space, which designs cube satellites for customers such as NASA and the US Airforce.

“Although we were clearly doing R&D we were being advised by people who didn’t understand the company and didn’t understand the potential,” “After working with the consultants at Jumpstart we recovered more than £60,000 from HMRC.”

Clive Kendal, Finance Director for Bilfinger Salamis, has a similar story to tell: “Jumpstart’s indepth technical and regulatory knowledge is second to none and their efforts provided us with a previously untapped income stream.”

“It’s really a case of each to their own,” concludes Jumpstart’s Brian Williamson.
“Our role is to maximise your R&D tax relief claim, then it’s over to your accountant to maximise the resultant tax benefit. What could be better?”

For a free consultation and analysis of the potential returns you might expect, call Jumpstart
on 0131 240 2900, quoting Process Industry Forum.

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