The MPA Group deal with HMRC on a daily basis and have a clear idea of what it's looking for, what needs to be submitted, and what format it should take. It's their area of expertise.John Sandford, Finance Manager Automotive Trim Developments Ltd
Our message is that if you are claiming, don’t assume it is a ‘good claim’ – take the time to review it with The MPA Group!Monika Mobley, CEO Everest Biotech Ltd
To date, we've received £600,000 in tax credits. We will certainly continue to use The MPA Group and are already looking at next year's claim. In fact, we're hoping it will pay this year's Corporation Tax bill.Nick Osborn, Managing Director Fenland Rapid Prototypes
The MPA Group was recommended to us by an accountant friend. I am also an accountant; I haven’t worked in the industry for about 10 years and haven’t kept up with all the developments. We didn’t realise that the R&D Tax Credit scheme would apply to what we did, and so it went under our radar.Andrew Hunot, Managing Director, Commercial Software Limited
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550 +successful claims per annum
£122m +successfully claimed for our clients
£109,500national average claim worth
What is the R&D Tax Credit scheme all about?
In 2000 the UK Government launched this EU-supported incentive. It is designed to support SMEs and Large Companies to innovate and increase their spending on R&D activities.
What qualifies as R&D expenditure?
The key element is that the product or service you’re planning to include in your claim is truly innovative and is, at a technological level, an advance on what’s currently available in the market. It’s our job to work with you to gather the evidence that will satisfy HMRC’s criteria, so that you don’t have to worry about interpreting the terminology. One key point is that R&D can still qualify even if the project is not successful.
How far back can I claim R&D Tax Relief?
Claims can go back two full financial years.
Can I claim if my company is loss-making?
Reporting a loss should NOT prevent a business from making an R&D Tax Credit claim. A loss-making SME can recoup up to 33.35% of its R&D expenditure via the scheme – a significant boost for any company. This is, in fact, a higher proportion of R&D expenditure than a profit-making business could claim for! A successful claim can release a cash injection into your business after your accounting year end, allowing you to continue with the investment that’s vital to facilitate growth.
What if the project we worked on wasn’t successful?
That’s not a problem. Research and development can inevitably result in some project failures. The eligibility for the scheme is not dependent on the outcome of the project, only on whether the spend qualifies.
Can I claim for sub-contracted work?
The short answer is yes, but it requires an expert view to ensure there is clarity on the contractual relationship. This is the sort of question our MPA experts deal with every day.
Can I claim for spend incurred overseas?
Potentially yes, but this is an area that requires an expert view, to understand fully how your business and activities are organised and to ensure that all eligible expenditure is recognised. We have a team of tax experts that will do just that and can ensure that your claim is optimised.
What happens if HMRC investigates my claim?
The costs in potential fines and time consumed in being the subject of an HMRC enquiry is significant. Worryingly, 90% of the claims we audit – where our clients have made a previous R&D Tax Credit claim – were wrong. They were either overclaiming or underclaiming. We review over 2,500 projects each year and write detailed technical reports on 40% of them to maximise your entitlement. We’ve been doing this for ten years; that’s a lot of projects. On the rare occasion where there is an enquiry, we will always defend any claim that we’ve produced at no extra cost.