Case Study – Research & Development Tax Credits

  • Project type – Concrete and renewable energy research and development

  • Total qualifying expenditure – £1.5m

  • Total Research and Development Tax Credits enhancement – £1.95m

  • Total tax saving @ 20% – £390,000

A major concrete manufacturer and renewable energy company initiated several projects to develop new products, manufacturing techniques and processes. Their accountant suggested that they should consider asking us to review the planned expenditure to assess whether qualifying research and development activity was occurring.

Following a detailed site visit and assessment of the various projects, which included – the development of new concrete bunker walls for grain and aggregate storage, a new anaerobic digester biogas plant and slip resistant castle flooring – we could inform the client that, much to their surprise, they were actually engaged in activities qualifying for research and development tax relief.

Following a comprehensive analysis of each project, we identified over £1.5m of qualifying expenditure. We prepared a detailed and fully disclosed report resulting in an additional deduction of £1.95m from their taxable profit, equating to a tax saving of over £390k.

This cash flow injection has allowed the company to invest further into their business and staff and has resulted in further new product development, making them one of the most cutting-edge firms in their sector.

The purpose of the research and development tax incentive is to reward those companies seeking to develop new products and expand the knowledge in the industry. Many companies believe this type of investment is an essential part of growing their business, but what they don’t often realise is they are in fact engaging in a qualifying activity for the purposes of the research and development tax incentive.

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Whether it’s a current investment project or you would like to discuss a historical review of expenditure, we can help.

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