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Do you feel that cash from R&D and Innovation activities are not available for you?

02 May 2012

Recently MPA stated that only 70% of MIA membership are claiming their rightful benefit under the R&D Tax Credit scheme.

Most MIA members have informed MPA, that they cannot qualify but that is far from the truth, here are a number of examples where members have made a claim.

Autosport Team – even though most of the car is homologated, there is an extensive amount of ingenuity and innovation required to compete and a lot of cost in testing. Claims have been made in excess of £50,000 for individual teams.

High performance Engineering – Build to print. In reality this is very rare, as MPA clients usually rely on in house expertise to complete the finished product or come up with solutions to technical issues. MPA have made numerous claims in this field and defined a specific criteria for this with HMRC.

Design and assembly – many members in the MIA use known existing components to develop a particular solution, these are usually integrated with the companies own design and the complete solution has to be tested and validated. It is standard practise to claim for all test and validation expenses and the integration of components is widely accepted as eligible activity. Most of the 35 claims a month we process include activities of this nature.

Innovating or designing for clients who are paying for the service – in most sectors of our industry clients pay for design and development. A common miss-conception is that a claim is not valid because the client has paid for the work, this is entirely wrong as the overriding criteria is commercial risk and most of the MIA members incur commercial risk in a number of ways. At least 75% of the claims MPA make are for companies whose clients have paid them to design or resolve issues.

Striving for efficiency / excellence – at heart of what most of us do is the desire to be the best and part of that is trying to organise the business and its processes in such a way that makes it efficient. All these activities are eligible under the scheme and feature regularly in our claims for clients in this sector.

The MPA Group would be surprised if you have not got to this point with at least some recognition that there is a potential claim for you. Please contact Clare Taylor on 01234 241610 or clare.taylor@thempagroup.co.uk

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