UK architects are among the most creative and innovative in the world. However, many architectural practices are not taking advantage of the HM Revenue and Customs R&D tax credit scheme, which has paid out nearly £6 billion in tax relief to some 24,000 companies since its introduction in 2000.
“Cowgill Holloway has helped clients, including businesses within the construction and development sectors, reclaim in excess of £2m to date, proving that there are significant financial advantages to be made from making a claim,” says Andy Ball, tax partner at Cowgill Holloway.
Andy continued: “The types of activities that qualify for R&D tax relief cover a broad spectrum and can be challenging for businesses to apply in practice, so it stands to reason that any company seeking to gain maximum benefit from tax credits in this field will need specialist advice in order to recognise the potential, fulfil the conditions involved and calculate how much relief can be claimed under the scheme.”
The Royal Institute of British Architects (RIBA) has recently encouraged architects to look into making a claim, emphasising that many routine activities may qualify for research and development tax relief, this includes work done on an informal basis or as part of a fee‐paid engagement.
SME’s (any businesses with less than 500 employees) can claim a corporation tax deduction equal to 225% of qualifying R&D expenditure from their taxable profits from April 2012, while larger organisations can deduct an amount equal to 130% of eligible R&D expenditure.
“In some instances, for our clients, R&D credits are more than just a tax incentive, they can provide a valuable source of funding because they find themselves in a loss situation and can surrender the loss in exchange for a cash payment,” Andy concluded.
Cowgill Holloway has a dedicated R&D tax credit unit. This highly motivated team pulls together the experience and specific specialist skills in tax, accounting and audit that are necessary to identify and successfully manage R&D claims.
For more information please contact Andy Ball.
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The information was correct at time of publishing but may now be out of date.
