About ValueAdd
Who We Are
ValueAdd is a premier R&D consultancy based in the UK, specialising in securing R&D tax credits for businesses of all sizes. With years of experience and successful claims, we pride ourselves on our deep industry knowledge and our ability to deliver exceptional results. Our team comprises chartered accountants, tax advisers and industrial experts who work together to provide a seamless and effective service.
Our Mission
Our mission is to help innovative businesses grow by maximising their R&D tax credits. We believe that fostering a culture of research and development is key to driving economic growth and maintaining a competitive edge in today's market. By partnering with us, you gain access to a team dedicated to uncovering every opportunity to add value to your R&D investments.
Our Values
Excellence
We strive for excellence in everything we do, ensuring that our clients receive the best possible advice and service.
Integrity
We value transparency and honesty, building trust with our clients through open communication and ethical practices.
Passion
We are passionate about innovation and the positive impact R&D tax incentives can have on businesses and the economy.
Why Choose Us?
Proven Success
With our consultants having submitted hundreds of successful claims and millions recovered for our clients, we have a track record of delivering results.
Personalised Service
We tailor our approach to meet your specific needs, ensuring a seamless and stress-free experience.
End-to-End Support
From initial consultation to claim submission and beyond, we are with you every step of the way.
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What qualifies as R&D?
R&D stands for Research and Development, and qualifying activities typically include projects that seek to achieve an advance in science or technology. To qualify for R&D tax credits, your project must:
Address a Scientific or Technological Uncertainty This means the outcome of the project was unknown and couldn’t be easily deduced by a professional in the field.
Seek an Advance The project aims to make an advancement in the field, beyond mere cosmetic improvements or standard upgrades.
Involve Technical Challenges Overcoming these challenges should require a systematic investigation, experimentation or analysis.
Examples of qualifying activities include developing new products, processes or services, improving existing ones, or creating new software or IT solutions.
How much can I claim?
The amount you can claim depends on the R&D scheme applicable to your business:
SME R&D Tax Relief For small and medium-sized enterprises, you can claim up to 230% of your qualifying R&D costs. This means for every £100 spent on R&D, you can deduct £230 from your taxable profits. If the company is loss-making, you can opt for a payable credit worth up to 14.5% of the surrenderable loss. This scheme is merging with the Research & Development Expenditure Credit (RDEC) scheme and can only be used for claims with year ends before 1st April 2024.
RDEC Scheme For large companies, the (RDEC) scheme offers a credit of 13% of your qualifying R&D expenditure. This credit is taxable but can be used to offset your tax liability or result in a cash payment if the company is not in profit.
Merged Scheme (Accounting periods beginning on/after 1st April 2024) The government has announced changes to merge the SME and RDEC schemes into a single R&D relief scheme. This unified scheme aims to simplify the process and ensure consistency in how R&D activities are supported across all businesses. While the specific details and rates are subject to final confirmation, the merged scheme is expected to streamline the benefits and possibly offer new rates for R&D tax relief. It’s advisable to stay updated with HMRC announcements or consult with an R&D tax specialist such as us to understand how the new scheme may impact your claims.
Examples of potential claims under the different schemes
SME Example
Qualifying R&D Expenditure £100,000
Enhanced Deduction (230%) £230,000
Tax Saving (at 19% Corporation Tax Rate) £43,700
Payable Credit (for loss-making companies) Up to £33,350 (14.5% of £230,000 surrenderable loss pre April 2023 10.5% post April 2023)
RDEC Example
Qualifying R&D Expenditure £100,000
RDEC Rate 13%
Tax Credit £13,000 (subject to tax)
Merged Scheme Example (Hypothetical, subject to official rates):
Qualifying R&D Expenditure £100,000
Unified Relief Rate Let’s assume 15% (hypothetical for illustration)
Tax Credit £15,000 (subject to tax or direct cash benefit depending on the company’s tax position)
These examples provide a general idea of potential benefits under different schemes. For precise calculations and to maximize your claim, it’s best to consult with an R&D tax specialist who can tailor the claim to your specific circumstances and ensure compliance with the latest regulations.
How long does the process take?
The duration of the R&D tax credit claim process can vary:
Preparation: Collecting information and preparing the claim typically takes 2 – 6 weeks, depending on the complexity of the projects and the availability of documentation.
Submission: Once prepared, the claim is submitted to HMRC as part of your company’s corporation tax return.
Processing by HMRC: HMRC aims to process R&D claims within 28 days for SME claims and slightly longer for RDEC claims. However, the entire process from submission to receiving the benefit can take 2 – 3 months.
What if HMRC questions my claim?
If HMRC raises questions or requires further information about your claim:
Initial Review: HMRC may request additional documentation or clarification regarding the claimed activities and expenditures.
Response: We will help you prepare and submit a comprehensive response to address HMRC’s queries.
Outcome: Once HMRC is satisfied with the explanations and evidence provided, they will process your claim. If adjustments are needed, we will work with HMRC to resolve any issues.
Our team provides full support throughout this process, ensuring that your claim is robust and well-documented to minimise the risk of queries.
Can I claim for past projects?
Yes, you can claim R&D tax credits for past projects. You can typically claim for the last two accounting periods, for example:
If your company has a December year-end, you can claim for projects completed in the year ending December 2022 and December 2023.
If your accounting period is shorter or longer than 12 months, the time frame for claiming might differ.
It’s essential to review past projects and timelines comprehensively to ensure all qualifying activities and expenditures are captured accurately.