Home > Dorset Chamber News > Taxman Credits £250k to Dorset Manufacturer for R&D

Taxman Credits £250k to Dorset Manufacturer for R&D

Posted on: 21/03/2018

An innovative electronics business with a manufacturing operation in Poole, Dorset, has received a whopping £250k as tax relief from the government via the HMRC research and development tax credit scheme – all within 21 months.

Rob Sowden, of Bournemouth-based Business Cash Enabler writes:

I visited this company less than two years ago and explained the government scheme to the owning director.  The R&D tax credit scheme enables a business to recoup a large proportion of costs incurred for any form of unique innovation that requires overcoming technical or scientific uncertainty.  The qualifying expenditure can generate tax rebates, a cash payment even when the business is loss-making, a deduction to offset tax on account or an enhancement of losses to reduce future tax liability arising.  Whichever way the client receives the credit, it is a bottom-line contribution to the business.

“A trading company that carries out any form of unique innovation may qualify year-on-year for this cashback from HMRC under this very generous scheme.  A company can claim back two years, or must have at least their first set of trading accounts.  The £250k this company received was based on two retrospective claim years plus their current year. A business does not have to be profitable to get this cashback, in fact a loss-making company can obtain an enhanced cash payout, up to 33% of qualifying staff costs. Some businesses have previously claimed and received small amounts, maybe £20k or £30k, which is much less than they are entitled to. What catches many businesses out is that they believe this claim opportunity is an accountancy work-stream, whereas it is really about technology.  The service I introduced this client to required a specialist technical analyst to identify all of the qualifying activities permitted within the government’s scheme rules.”

Business Cash Enabler provides a free service to businesses to check eligibility under the HMRC R&D tax credit scheme.


Did you know, Dorset Chamber Members can submit news free of charge?

Submit your news

Most popular reads

Become a member

Become a Dorset Member today

Find out how

Dorset Focus Magazine

Keep your finger on the pulse

Get the latest business news in one neat package with our Dorset Focus Magazine. Read Online here

Business Training

Free Training to help businesses across Dorset provided by Dorset Chamber members

Some training opportunities are open to non-members

Find out more

Business Partners