R&D is a highly technical area … We were looking for a firm that clearly understood the technical language of R&D and were committed to executing the work required in an equally technical and detailed way. Working with Catalyst was a pleasure.
This rigorous and thorough approach was exactly what we were looking for and our experience reinforced that the Catalyst team are some of the best in the business.
R&D is a highly technical area … We were looking for a firm that clearly understood the technical language of R&D and were committed to executing the work required in an equally technical and detailed way. Working with Catalyst was a pleasure.
This rigorous and thorough approach was exactly what we were looking for and our experience reinforced that the Catalyst team are some of the best in the business.
of Experience
R&D Tax Claims processed globally
Compliance
The UK Research and Development (R&D) Tax Credit is a government incentive designed to encourage companies to invest in innovation. It provides financial benefits to businesses conducting qualifying R&D activities, allowing them to claim a tax deduction or cash refund.
CONTACT USThe SME R&D Relief applies to small companies (less than 500 employees, annual turnover not exceeding EU100 million or balance sheet not exceeding EU86 million) that are conducting R&D on their own behalf (not subcontracted).
RDEC applies to large companies (and some small companies unable to claim under the SME Scheme).
R&D Intensive Scheme applies to loss making SME companies that meet certain R&D Intensity conditions:
SME Enhanced R&D Intensive Support (ERIS) scheme applies to loss making SME companies that meet certain R&D Intensity conditions:
Merged Scheme R&D Expenditure Credit (New RDEC) applies to all companies (SMEs and Large) for accounting periods beginning on or after 1 April 2024.
In order for a project to qualify for the incentive, HMRC guidelines explain that “the project must seek to resolve specific uncertainties to achieve an advance in a qualifying field of science or technology”.
Some of the criteria that need to be met include, that the goals of a project must:
Qualifying fields of science and technology vary from Engineering and Construction, medical research, pharma, defence, agriculture, computer science, AI or sports science (not an exhaustive list).
Qualifying costs can vary depending on the scheme and financial period. The primary costs that typically make up the majority of a claim for R&D tax credits include staffing costs for employees engaged in qualifying R&D activities. Additionally, externally provided workers, some subcontracted R&D costs and consumables can also be claimed.
Recently, the legislation has expanded to include certain software, data licensing and cloud computing costs.
Our Tax specialists will work closely with you to extract all relevant expense information and ensure that you are maximising your R&D returns in a fully compliant way.
All claims are made retrospectively on R&D that has already taken place. A company has two years from the end of a financial period to claim R&D Tax (this is subject to the requirement of submitting a pre-claim notification within the notification window.
The HMRC places heavy emphasis on the use of competent professionals (“CP”) in proving the legitimacy of an R&D project. The guidelines discuss that a CP is someone who can “judge if a scientific or technological advance is needed to solve a particular problem”. The CP is an integral part of an R&D Tax claim and the technical experts at Catalyst Solutions will work closely with your CP to clearly define the R&D being undertaken.
Additional Information Form
Before a claim can be submitted, an Additional Information Form (“AIF”) must be submitted to HMRC. No claim will be considered without this AIF having first been submitted. Catalyst Solutions will prepare the AIF based on the technical narrative that we prepare and the financial information that we gather on all qualifying projects.
Claim Notification
If you are claiming for the first time or have not made a claim for more than three years, then you are required to submit a claim notification to the HMRC within six months of the year end for the financial year you wish to make a claim.
Technical Narrative
Qualifying R&D needs to be described in detail and specific points addressed for the HMRC to be able understand why you feel you qualify for the incentive. There are rules on how many projects need to be described and our technical experts will guide you through the process.
Financial Calculation
It is important to provide the HMRC with a detailed breakdown of all qualifying expenditure relating to the R&D being claimed. The expenditure must be broken down into various categories, calculated at specific rates and various caps applied. Our team of ACAs and accounting professionals will work closely with you to extract all of the relevant information, calculate the correct figures and to present it correctly for the HMRC.
Historically, companies could claim the R&D relief even on some R&D work that occurs abroad. However, the changes in the various R&D schemes have added complexity around claims for foreign subcontracting. It’s advisable to consult with Catalyst Solutions to navigate these nuances and maximize your R&D relief.
Funded (subcontracted or subsidized) R&D has always been a complex topic in R&D Tax.
Under the legacy SME scheme (for periods of account starting before 01 April 2024), HMRC generally disallowed R&D done under contract, even if R&D was not specified (in some circumstances it could be claimed under RDEC).
The new schemes (for accounting periods starting on or after 01 April 2024) simplify this by generally allowing the company deciding to undertake the R&D to claim relief.
Our Tax Specialists will work with you to understand how these rules impact your claim.
We’re proud to work within the world’s most unique R&D-driven innovations spanning across multiple industries. We have uncovered opportunities for Fortune 500 pharmaceutical companies and up-and-coming AI startups.
Long-term partnerships are built on win/win relationships, so we keep our fee structures competitive, flexible and fair.
From our intricate technical discussions to financial calculations, we don’t just do what’s required - we do more.
Operating in four major markets, our global expertise in regulated incentives makes us highly competitive. We adapt to diverse regulatory environments with precision.
As part of the VAT IT Group, we can advise regarding other indirect tax reclaim opportunities and unlock even more savings for your bottom line.
We continuously engage with you to ensure a complete understanding of the incentive’s requirements resulting in the identification of all qualifying projects.
Our technical advisors work hand in hand with you to prepare detailed and robust technical narratives.
Our financial consultants extract and compile all the qualifying costs associated with R&D projects, ensuring that your benefit is tax-compliant.
At the conclusion of our engagement, you'll receive a comprehensive report containing all necessary forms and documentation to support and optimise your HMRC-compliant R&D tax claim.
Our integration into your R&D process ensures that your claim will be compliant and defended in the event of an HMRC enquiry.
Up to 48.5% of qualifying expenditure can be claimed as a tax offset via the R&D Tax Incentive which is governed by the Income Tax Assessment Act.
In Germany, up to 35% of qualifying expenditure can be claimed via the Research Allowance Act (“FZulG”).
A 150% supercharged tax deduction on qualifying expenditure is available via the R&D Tax Incentive which is contained in the Income Tax Act.
We assist companies across the globe with R&D Tax Incentive related claims and obtain R&D Tax Incentives for some of the world’s largest listed companies.
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