Do you understand HMRC’s definition of R&D?

You might think of R&D as something that is only done by people in white coats in a laboratory, but in fact the HMRC guidelines take a good few pages to define R&D for tax purposes and it covers an awful lot more than just laboratories. If you are carrying out a project that directly contributes to an overall advance in your company’s area of expertise – whether that be manufacturing blinds, bagpipes, boilers and anything in between - then you may well be doing what HMRC defines as R&D without even realising it. Don’t worry if you’ve tried an advance and it has failed, just because something hasn’t worked it doesn’t mean it is not R&D, an attempted advance that failed can be just as eligible as a successful one.

Do you know the difference between a technological uncertainty and a technological unknown?

Arguably the most important distinction to understand in the claim process is that between a technological unknown and a technological uncertainty. It doesn’t sound like much but, for HMRC, the difference between an uncertainty and an unknown can be the difference between an eligible and ineligible claim. A technological unknown is a problem that can be easily solved using conventional methods whilst a technological uncertainty is what arises once

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Claiming for R&D tax relief is a complex business and one that requires a broad range of knowledge, not only of the R&D being carried out, but also of the very comprehensive guidelines set out by HMRC. While most companies have the first part covered – a thorough understanding of what they do – many find that the trickiest part of the claim process is understanding just what HMRC expects from them, resulting in two main issues - over claiming and being subjected to inquiry or under claiming and losing out on money. So does your manufacturing business have R&D tax relief claims covered? The following questions should reveal the true answer....

“ You may well be doing what HMRC defines as R&D without even realising it.”

CLAIMING FOR R&D TAX CREDITS

We were thrilled to realise much of our work meets the R&D criteria.

| STUART MCCALLUM

| DIRECTOR

| MCCALLUM BAGPIPES

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100 Our team of highly-qualified technical analysts is the largest in the UK and to date has helped more than 500 businesses with a 100% success rate for our applications.

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DO YOU REALLY HAVE IT COVERED?

w w w . j u m p s t a r t u k . c o . u k A H E L P I N G H A N D F O R M A N U FA C T U R E R S

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So, you understand what HMRC defines as R&D and have identified eligible projects with tech-nological uncertainties in your company’s manufacturing work. Now what? Do you know which costs to claim? What HMRC views as eligible expenditure and what it does not?

Whether or not you can claim for subcontracted work and how a grant might affect your claim? It’s a minefield in which an understanding of HMRC’s guidelines is essential. That is why so many companies are turning to R&D tax relief specialists like Jumpstart - you know your projects and we know HMRC’s guidelines, which means as a team we can always ensure the best possible claim!

We were so impressed with Jumpstart, primarily because they are the only pro – active firm who actually take the time to visit their clients, actively explain the process and offer clarification to what will be required our end. We are now increasingly more confident about how the method works and the nature of claim eligibility.

| MIKE JARMEY

| DIRECTOR

| THE MAYFIELD GROUPEnsure that technical staff understand the scheme.

Ensure you fully understand all the differences between an unknown and uncertainty.

Identify every eligible project - often, there are more than you think in manufacturing.

Ensure your submission is not over-claiming for areas that are not R&D.

Do you know about all the other stuff you can and can’t claim for?

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *About JumpstartJumpstart is a science and technology company that specialises in R&D tax relief. They are 100% focused on helping companies make successful claims for HMRC’s R&D tax relief programme. Helping with all stages of the claim process, they ensure that only optimised, accurate and compliant claims go before HMRC. The key to their success is that every member of their delivery team has a first or postgraduate degree in an area of technology or science.

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T 0131 240 2900 F 0131 226 4506 E helpinghand@jumpstar tuk .co.uk

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2,500 The number of claims successfully submitted by Jumpstart from 2008 to 2013.

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Quick check list

all of the conventional problem solving methods have been exhausted and it’s time to start thinking outside the box. This is when R&D begins.