R&D Tax Credits and Relief

[northernladyuk]

So far impression is that it can be a minefield and more problems in future with HMRC. Definitely not worth for 10k

You probably want a UK tech startup forum for this type of question.

[Hamilton Wood and Co]

I wonder did anybody tried to claim R&D Tax Credits and Relief?
As an example can you purchase of high-end PCs and equipment for machine learning (with multiple GPU) and prototype software development? And claim that for R&D?
Is it worth it?

Hi Andrew,

What is key with R&D is to be trying to advance your business and industry by seeking innovation.

If something has been done the same way before and you are not really securing a major advance by copying existing methods then the answer will be no, you can't claim...

However, lets say another company has done something weird and wonderful with machine learning and artificial intelligence (which is a hot topic for the UK government at the minute and there are grants available in this area), but the way they secured the advance was not known to you or your business and you go through a process of trying to secure the same or similar advance, by resolving your own uncertainties with the best way forward, then you may be able to claim a portion of the kits cost for the period the research and development (R&D) was taking place.

It can be a bit of a grey area and despite some of the comments on this thread, its not a dark-art or going to cause issues in the future if its done correctly.

It is important to talk to specialists whether that's us or another company but what is important is to only claim for the genuine entitlement because if the amount is artificially inflated, then you can see how this could cause you problems later down the line.

What is worth bearing in mind is that the incentive is in place to help support emerging and established businesses who are trying to move their industry and sector forward. Interesting fact, you can claim even if a project you were working on didn't work out, as striving for the advance increases your knowledge, experience and capability so you can still recover costs incurred whilst the project is trying to resolve any of the technical challenges you are faced with.

Hope this removes some of the misinformation that's out there.

Good luck!

Kelly Hamilton
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[WordIsBond]

It can be a bit of a grey area and despite some of the comments on this thread, its not a dark-art or going to cause issues in the future if its done correctly.

true

Interesting fact, you can claim even if a project you were working on didn't work out, as striving for the advance increases your knowledge, experience and capability so you can still recover costs incurred whilst the project is trying to resolve any of the technical challenges you are faced with.

true

...what is important is to only claim for the genuine entitlement because if the amount is artificially inflated, then you can see how this could cause you problems later down the line.

true

It is important to talk to specialists whether that's us or another company...

false.

Instead, apply for Advanced Assurance. HMRC has a special unit designed for this, and if you've got something legit, they will give you a LOT of help on what is claimable and what isn't, how to go about it, and they'll work with you through the process. Very helpful people -- and you don't have to pay for the advice, either.

If you've claimed for R&D before, you can't apply for Advanced Assurance, but if you haven't, that is definitely the way to go. I thought I was just getting approval, but I ended up getting a lot of advice and encouragement that some things for which I thought I couldn't claim, I should go ahead and claim.