Our client’s activities focus on three main areas – namely the provision of training courses, external testing and various product development. The company was formed in 2009 by a group of ex-Army Special Forces Engineers. The nature of their business means it is involved in top level and highly secretive operations and missions that must have the top level of government clearance.
One of their missions involved allowing covert operators to gain access to alarmed premises in order to conduct further intelligence exploitation. The operation required the user to attack the microchip within the alarm panel which involved a significant amount of research and development in order to find a solution.
The company had engaged a leading Research & Development (R&D) specialist to file a claim and had been shaken up by the subsequent enquiry from HMRC who were proving to be their arch-nemesis. They had given up all hope of claiming this and future relief even though it was apparent the company could qualify.
Upon engagement, our specialists moved into action and reviewed the historical claim. They found the report was very poorly written and contained significant technical errors which resulted in the time consuming HMRC enquiry and meant they were ultimately heading towards failure. In addition, the business was coming close to the two-year deadline to claim the relief or risk losing it forever. We took control of the situation, opened up a dialogue with HMRC, stirred the team into action, rewrote the report, resubmitted the claim and project managed through to successful completion.
Within weeks of engagement, Alexander Rosse was not only able to get HMRC to reverse its decision but we have also filed four consecutive successful claims on behalf of the client, all enquiry free. To date they have received well over £250,000 cash back from HMRC.
About R&D Tax Credits and Other Tax Reliefs
R&D Tax Credits are a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing their business. There are a number of other reliefs available – for example the government actively encourages investors to invest in start-up companies by providing income tax and capital gains tax relief through the Seed and Enterprise Investment Relief (S/EIS) Schemes.
We would be delighted to hear from any company or investors with questions on R&D, S/EIS along with Patent Box, VGTR and Capital Allowance Work.
Alexander Rosse clients have an enquiry rate of less than 2%, compared to an industry average of nearly 10% meaning you are five times less likely to get an enquiry.
ALEXANDER ROSSE – Xero Platinum Partner Digital Chartered Accountants and Tax Advisors to fast growth tech and entrepreneurial businesses.