Why you should claim R&D tax relief for your mechanical engineering projects
If you’re a mechanical engineering company, you know how important it is to keep innovating and developing new products or processes that can solve problems, improve efficiency, or create value for your customers. But you also know how costly and time-consuming it can be to carry out research and development (R&D) projects, especially in the current economic climate.
The benefits of R&D tax relief
That’s why we want to tell you about the benefits of R&D tax relief, a government scheme that supports companies that work on qualifying R&D activities in science and technology. You may be eligible to claim R&D tax relief if your project aims to achieve an advance in knowledge or capability, or overcome an uncertainty, in your field of engineering.
Reduce your Corporation Tax bill
R&D tax relief can help you reduce your Corporation Tax bill or receive a cash payment from HMRC, depending on your company size and profitability. The amount you can claim depends on the type and scale of your R&D project, but it can be significant. For example, for every £100 you spend on R&D, you could get back up to £33.35 if you’re a small or medium-sized enterprise (SME), or up to £10.53 if you’re a large company.
R&D tax relief can have a positive impact on your business in many ways. Here are some of the benefits that our clients have experienced from claiming R&D tax relief for their mechanical engineering projects:
- Increased cash flow: R&D tax relief can provide a valuable source of funding for your business, especially if you’re an SME or a start-up. You can use the money to cover the costs of your R&D project, such as staff salaries, materials, equipment, or subcontractors. You can also use it to invest in other areas of your business, such as marketing, training, or expansion.
- Enhanced innovation: R&D tax relief can encourage you to pursue more ambitious and challenging projects that can lead to breakthroughs in your industry. You can explore new ideas, technologies, or methods that can improve your products or services, or create new ones. You can also collaborate with other companies or organisations that can offer complementary skills or expertise.
- Improved competitiveness: R&D tax relief can help you gain an edge over your competitors and increase your market share. You can offer more value to your customers by providing them with better quality, performance, or functionality. You can also differentiate yourself from other companies by demonstrating your commitment to innovation and excellence.
R&D tax relief has been a great support for our mechanical engineering clients, and we want to help you take advantage of it if you qualify. We are experts in R&D tax relief and we can help you with the process from start to finish. We can help you identify and document your eligible R&D activities, calculate and maximise your claim amount, and submit your claim to HMRC.
We offer a free consultation and a no-win no-fee service, so you have nothing to lose and everything to gain by claiming R&D tax relief for your mechanical engineering projects. Contact us today and let us help you boost your business 🚀.
What do you think? Have you claimed R&D tax relief for your mechanical engineering projects? How has it benefited your business?