R&D Success Story: The ‘Structure’ of R&D

THE INNOVATION

As a construction and restoration company, our client puts considerable time and resources into developing beams, columns and other structural support networks for listed buildings and heritage sites nationwide.

HOW WE APPROACHED THE CLAIM

Off the back of this work, we sought to assist them in formulating an R&D claim in respect of their costs incurred while completing this developmental work. Using our tried and tested financial analysis system, coupled with a Technical case file that we drew up using the information provided by the client and our own extensive experience.

THE PROBLEM

The challenge that was faced was identifying exactly what costs were incurred on each project from a staffing perspective. Our client makes use of subcontractors, therefore the costs allowable for R&D are not the same as with standard staffing costs. Additionally we had issue in obtaining a breakdown of subcontractors working per project.

THE SOLUTION

To solve this problem we obtained day rates for each subcontractor and confirmed the number of days spent on each project thus providing us with a definitive figure to include within the client’s claim for staffing costs on a given project.

This also provided us a basis of cost to support these figures in the unlikely event of an enquiry from HMRC and as such reduced the clients overall risk.

THE RESULT

From our work we were able to successfully submit a claim on our client’s behalf and obtain for them a tax refund to the value of £58,533!

Additionally, this case enabled us to streamline our system for dealing with subcontractor costs in respect of R&D for the subsequent year claims for our client and for the benefit of any other clients in a similar position.