Celebrating our first Research & Development Tax Relief Millionaire

 

Celebrating our first Research and Development Tax Relief Millionaire

We are very proud to say that as of this month we have managed so save one of our clients, an IT Services provider over £1 million in R&D tax relief in just two years of working with them. A nice little Christmas present for everyone!

As we acknowledged in our previous blog, there has been a tremendous boom in the technology sector, particularly in the South East of England in the recent years. We here at Cooden Tax Consulting have been working tirelessly with businesses in this sector to help them realise their potential and claim back the Research and Development (R&D) Tax Relief that they rightfully deserve.

How Can Cooden Tax Consulting Help You?

We could do the very same thing for your business by using the following three pieces of Government Tax legislation:

  • Research and Development Tax Relief
  • Patent Box
  • Video Games Tax Relief

Research and Development Tax Relief

We largely focus on R&D Tax Relief, a scheme implemented by the Government in 2000 to give business owners confidence in investing in Research and Development for the benefit of their company. Under R&D Tax Relief, companies can either reduce their tax bill or in the event that the R&D spend creates a loss companies can claim back up to 33.35% of R&D spend on their own internal projects and 8.8% of R&D spend for subcontracted or subsidised projects, all in cash as R&D Tax Credits.

Granted, in order to be an R&D Tax Relief Millionaire you have got to have spent it to get it, but interestingly our Technology Millionaire knew about the R&D Tax Relief scheme and as an IBM Platinum partner, was already claiming for some of their own internal R&D projects, but they weren’t aware that their subcontracted customer work also qualified. It was the work that they were being paid to do that has contributed the most to their millionaire status.

Astonishingly, around 80% of businesses are currently unaware of the substantial amounts of money that they could be saving in R&D Tax Relief.

Patent Box

Introduced by the Government in April of 2013, this initiative has been designed to complement other forms of R&D Tax Relief and focuses on encouraging business owners to make profits through their patents, ultimately reducing the amount of tax paid on profits. You could be eligible if you own a patent that is granted by:

  • The UK Intellectual Property Office
  • The European Patent Office
  • The National Patent Office of most countries with the EAA

Read more about Patent Box

Video Games Tax Relief

As the name suggests, this initiative is specifically aimed at Video Games Developers that are susceptible to corporation tax and are directly involved in the development of ‘British’ video games. Further to this, the video game that has been developed must be intended for supply with 25% of core expenditure being spent on goods or services that are provided from within the EEA.

Read more about Video Games Tax Relief

Let Cooden Tax Consulting help your business!

For more information, call one of our friendly consultants today on 01424 225 345 or email us at info@coodentaxconsulting.co.uk . We look forward to hearing from you!