Following forklift safety innovations, a logistics company has received £151,000 in R&D tax incentives from the government, despite being told in the past that it would not qualify.
This company spent hundreds of thousands of pounds on qualifying projects — including improvements that made forklift trucks safer to drive — but the firm was resigned to the fact it would not be able to access the R&D tax credit scheme.
This all changed when it consulted R&D tax specialist Catax’s experts and the company has now successfully collected £150,850 in tax relief for multiple projects that qualified under HMRC’s criteria.
The haulage and warehousing specialist has a fleet of 60 vehicles and over 200,000ft of heated warehousing spread across three sites.
The company wanted to make forklift truck driving safer for staff and the goods in its care because visibility for drivers of forklifts was not ideal. The firm resolved to develop a remote camera array that fitted to the trucks’ masts, which had numerous advantages.
R&D tax credits were introduced by the government in 2000 to incentivise innovation, and result in either a reduction in a limited company’s corporation tax bill or a cash lump sum.
Many firms don’t realise the work they do qualifies as R&D, which is defined as any work that seeks to resolve a scientific or technological uncertainty, whether that’s a new process, product or service. Crucially, R&D work does not need to have been successful to qualify, and claims can be made up to two years beyond the end of the tax year in which the work took place.
A company specialising in R&D projects advised, “We frequently come across companies who are entitled to make valuable claims despite having been told, in the past, that their work does not qualify.”
R&D tax credits are a complex tax area and that’s why not all tax advisers and accountants understand enough about the scheme to accurately identify which clients, and what specific pieces of work, fall under HMRC’s definition of qualifying work. Should you need any advice, Ascend Broking Group have partners that may be able to help. Contact us on 01245 449060