R & D Tax Relief explained

Bevan & Buckland AccountantsResearch & Development Tax Relief – Encouraging Innovation through the Tax System

For over sixteen years companies have been able to derive significant cash benefits from the Government’s Research & Development (“R&D”) tax regime.

Below leading R&D Tax Specialist, Paul Arnold (Tax Partner at Bevan & Buckland), answers many of the key initial questions companies frequently ask regarding this regime:

1.            What is the R&D tax regime all about?

The R&D tax regime provides companies with actual cash benefits which are directly linked to the level of qualifying expenditure incurred.

For example, SMEs may now derive an additional cash benefit equivalent to £26k per £100k of spend; or if they are loss making they may receive an actual cash receipt from HMRC of up to £33.35k per £100k of spend.

The cash benefit for companies claiming under the large company scheme is £8.8k in both scenarios i.e. since April 2013 companies without a corporation tax liability may now receive actual cash from the Government.

Companies have two years from the end of their accounting period to make, or amend, an R&D claim so there is often scope for companies to derive significant immediate cash benefits.

2.            How is R&D defined?

For this purpose we need to consider the tax definition, which is often more far reaching than many people perceive.

R&D can generally be thought of as work undertaken to develop new, or improved, products or processes.  For example, developing an automated process, or one that is quicker, more efficient or creates less waste etc. may potentially qualify.

3.            What expenditure qualifies for this enhanced relief?

There are a range of qualifying categories of expense, including staffing costs, contracted out activities, EPWs (for instance, agency workers), consumables, computer software, utilities and payments to the subjects of clinical trials.

However, knowing that staffing costs qualify is the easy part.  The complexity in preparing a claim involves, for example, identifying all employees involved within the R&D process and establishing the correct proportion of time they were engaged in qualifying activities.

4.            What do you view to be the most important aspects in preparing an R&D claim?

Firstly, to ensure the claim is maximised.  Preparing a standard R&D claim is far from complicated but unless a company takes proper, experienced advice they risk losing out on cash benefits to which they are entitled.  The real added value lies in identifying all R&D projects undertaken (including work on processes), all qualifying activities, all employees involved and all other qualifying expenditure incurred.

Secondly, the documentation submitted to HMRC in support of a claim is vital.    This helps HMRC to determine whether a company’s activities qualify and therefore a company needs to ensure that the R&D Report contains the required information.

Finally, as part of my consultations with a company, I believe it is important to develop an internal process to assist with future claims and to minimise the input required from their personnel.

Should you wish to speak to Paul he is contactable on paul.arnold@bevanbuckland.co.uk or 01792 41010 / 075575 03140.



Free Tax Relief for R&D Seminar

Bevan & Buckland Accountants logoTax Relief for Research and Development – Paul Arnold

10th July 2015 , 12:00 – 14:30 – FREE ENTRY

Swansea University – Knowledge Exchange Wales (KEW)
Friday, 10 July 2015 from 12:00 to 14:30 (BST)
Singleton Park, Swansea

Networking lunch followed by masterclass

Research & Development Tax Relief

Companies have for many years been able to derive significant financial benefits from expenditure incurred on qualifying Research & Development (“R&D”) activities.  Following a number of recent changes to the scheme it has now become even more generous.

The seminar will cover:

  • What is R&D for tax purposes?
  • The financial benefits that can be derived
  • The range of costs and activities that can qualify
  • Recent changes to the regime, which now enable all loss making companies to potentially claim tax free cash from HM Revenue & Customs
  • How to maximise claims thereby ensuring companies claim their full entitlement


Patent Box – 10% corporate tax rate since April 2013

New rules on a lower tax rate for profits derived from patents took effect in April 2013.  These new rules, known as the “Patent Box”, are intended to increase the UK’s competitiveness, stimulate innovation and encourage investment in the UK by introducing an effective 10% corporate tax rate for qualifying profits.

The seminar will cover:

  • A summary of what the Patent Box is and how companies may benefit
  • The conditions which companies need to satisfy, and actions that companies may need to take, to ensure they qualify for this regime
  • How you might structure your business, R&D activities, intellectual property and earnings to maximise the benefits of this regime
  • An update of the recent announcements regarding the regime

Paul will be holding this seminar and he is an R&D and Patent Box specialist.  Paul is Head of Tax at Bevan & Buckland, and in addition to advising many owner managed businesses he has also advised some of the largest companies in the UK, including FTSE 100 companies and large multinational groups and is a member of HMRC’s R&D Consultative Committee.

If you would like to reserve a place click here

If you have any questions about Tax Relief for Research and Development please contact – Paul Arnold

IP & Innovation in your business seminar

Bevan & Buckland Accountants logoBevan & Buckland, together with UDL Patent and Trademark Attorneys, and JCP Solicitors, are running a joint seminar on IP & Innovation in your Business.

During the seminar you will hear three presentations:

  • R&D Tax Relief and the Patent Box – Mr Paul Arnold, Tax Partner, Head of R&D and Innovation, at Bevan & Buckland
  • Maximising your Business Potential – IP and exploiting your income streams – Dr Kerry Beynon, Head of Intellectual Property at JCP Solicitors
  • Patents Uncovered: Myths, Risks and Answers to Common Questions – Mr Tom Baker, Partner at UDL (Urquhart-Dykes & Lord LLP)

We will be holding the seminar at:

  • The Liberty Stadium Swansea, Wednesday 3rd June 2015
  • The National Botanic Garden of Wales, Wednesday 10th June 2015

Both events will take the same format:

10:30am                      Arrival & Refreshments

11:00 to 12:30pm       Presentations & Q&A

12:30  to 2:00pm        Buffet & Networking

We hope that you will be available to attend one of the sessions above and ask that you please RSVP to Paul Arnold on 01792 410110 or alternatively, you may email paul.arnold@bevanbuckland.co.uk.

We apologise should you received duplicate invitations from the respective organisations involved.

We look forward to hearing from you.

Paul Arnold

Tax Partner – Head of R&D and Innovation
Paul is an R&D and Patent Box specialist.  In addition to advising many owner managed businesses he has also advised some of the largest companies in the UK, including FTSE 100 companies and large multinational groups.


Research and Development (R&D) tax relief

Bevan & Buckland Accountants logoBevan & Buckland video series No 2 – Research and Development (R&D) tax relief.

This is the second in a series of six short videos that have been developed to provide businesses with essential advice across various key areas.
The videos will feature an expert insight into business valuation, research and development tax credits, auto enrolment, financial advice, tax investigations and charities.

Bevan & Buckland R&D expert Paul Arnold explains one of the most generous tax reliefs today – R&D.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

A warning of the change in the HMRC stance coming Oct 14

Bevan & Buckland Accountants logoPenalties will start in October 2014 if you fail to file PAYE submission on time

Since Real Time Information (RTI) began in April 2013 the HMRC have been saying that they are going to introduce penalties for late payments and late submissions.

They have now are announced that they will start in October 2014 if you fail to file PAYE submission on time.

The penalties will apply unless you follow these simple rules.

  1. You must submit an FPS each time you make a payment to an employee, on or before the date that you pay them.
  2. You must send an EPS if no payments are made to any employees , or if you have any statutory payments to claim.
  3. Pay your PAYE on time – by the 19th of the month following the payroll process date.

The late filing/payment penalties will depend on the number of employees, and will be charged for each month the submission is not filed on time, up to a maximum of 11 fixed penalties in a tax year.

1 to 9 £100

10 to 49 £200

50 to 249 £300

250 or more £400

If the submission is late for three months or more they could charge a further penalty of 5% of the tax/NICs that would have been paid if the information it provides had been sent on time.
For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

To find out what other services are offered by Bevan and Buckland visit www.bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Pension Scams:

 a lifetime’s savings lost in a moment

24 July 2014


The Pensions Regulator has launched a new campaign to warn people of the dangers of being enticed into

· trying to access their pension pot as a lump sum or loan before age 55, or

· moving their retirement savings into unregulated high-risk or bogus investments.

Arrests have been made, and websites have been closed down, but it is clear that more needs to be done to discourage often vulnerable people from following some very dangerous advice.

The Regulator’s press release mentions that “the Victims of pension scams have warned of the devastating impact of losing thousands of pounds in retirement savings”. It notes that “the known amount of funds paid into pension scams now stands at £495m in total. However, it is suspected that this amount is likely to be substantially higher and not all activity is reported.”

As part of the new awareness drive, The Pensions Regulator has refreshed its ‘Scorpion’ campaign material to reinforce the message to consumers not to be ‘stung’ by cold calls, text message spam or website offers claiming to be able to help them cash in their pension. The regulator is urging pension trustees and providers to include the leaflet in the next annual statement sent to members, and anyone who requests a transfer in the meantime.

Pensions minister Steve Webb has warned: “Although quick-fix pension release schemes may seem tempting, particularly when times are tough, people should make sure they understand all the implications before they sign on the dotted line. A joint industry and Government operation is working to stamp out these unethical, exploitative, poor value offers – but I would urge anyone who is approached to think carefully, consider seeking advice and, if in doubt, steer clear.”

The new campaign is being led by the Department for Work and Pensions, The Pensions Regulator, The Pensions Advisory Service, Money Advice Service, Financial Conduct Authority, Serious Fraud Office, HMRC, Action Fraud, National Crime Agency and City of London Police.

Visit www.pension-scams.co.uk for more information.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484