R&D tax credit calculator – What is it really telling you?

Posted on Thursday 19 November 2020 by Luke Hamm | Chief Executive Officer

We know that a lot of competitors have a “calculator” on their website or examples of R&D claims. We’ve never felt that this was necessary, not because it’s difficult or mysterious – but because it asks the wrong question and therefore gives you the wrong answer.

The mechanics of the schemes – RDEC or SME?

Most R&D tax credit calculations or worked examples that you’ll see online start by establishing which schemes apply. Sometimes this is a simple matter of working out whether your business is small or large. Sometimes it’s more complicated with SME’s using the RDEC scheme in circumstances that are prohibited under the SME scheme. The R&D tax credit calculators very rarely reflect this nuance. The questionnaire on our site helps you work out which scheme is best for your business by answering a series of questions.

Do you need an online R&D calculator to multiply a number by 25%?

At its core you are multiplying the R&D qualifying expenditure by a percentage – and we don’t think you need a worked example to do that maths. And if all you’re going to do is take the R&D line of the accounts for your qualifying expenditure then you probably don’t need an R&D specialist at all. But you will be making an R&D tax credit claim for the absolute minimum amount possible. Where GovGrant adds the most value is uncovering R&D where you’ve not identified it before. This number is unknown to many of our clients before they recruit our services.

What qualifying expenditure do you add to your tax credit calculation?

This is the special sauce. We bring the skills to identify the full potential of your claim. We will team you up with an expert who knows about your industry. They walk the floors (usually literally, at the moment this can be virtually) and get to know your business. They can identify what you do to develop and innovate your products or services and maximise the R&D qualifying expenditure that you can claim against.

Our R&D tax relief calculation

It’s not that we don’t have our own insight, number crunching, and evaluation tools. When you start your journey with us we’ll look at your accounts, speak to you about your business and make an initial assessment of the potential of your claim – based on a whole range of factors.

At this point we can calculate the value of your potential R&D tax claim – with confidence. Not on the back of an envelope or with a simplistic online calculator. Contact us to get started.

GovGrant R&D tax credits

About Luke Hamm | Chief Executive Officer

Luke Hamm | Chief Executive OfficerJoining GovGrant in 2017 as Commercial Director, Luke now brings his passion for client delivery to the role of CEO. He ensures that GovGrant is taking its place as the UK’s largest specialist provider of IP services and R&D tax relief, helping our clients commercialise innovation. View profile