What is R&D tax reliemoneyf?

The UK has a well-established government scheme for
rewarding companies involved in research and development activities, delivered through the corporation tax system. Claims can be made for up to two years after the end of an accounting period:

A small or medium sized company (SME) may be able to
 exchange trading losses for cash (the "tax credit")

 - worth up to 32.63% of the qualifying R&D expenditure

If tax paying, an SME may be able to generate a repayment
 or reduction in liability

- worth up to 28.75% of the qualifying R&D expenditure
Large Companies (non-SMEs) may be able to claim a taxable cash payment of 10% of the qualifying R&D expenditure
All companies may be able to claim a 100% tax deduction for capital expenditure relating to eligible R&D

Are you eligible?

Many companies assume they are not eligible, seeing their activities as not R&D but “just” engineering, product development, or manufacturing. The term R&D tends to evoke academic or blue-sky concepts, but eligible work can extend into many practical fields such as manufacturing, engineering and software development. Importantly, improvements to existing products or processes can also encompass eligible work as the relief is not focused purely on new product development. Experience has shown that any company who has a technology basis for their business may have a claim. In certain circumstances, you may be able to claim even if being paid to carry out the work.

How can ela8 help?

ela8 delivers quality expertise in R&D Tax relief at an affordable cost. We carry out a quick, efficient and seamless service though a small team of highly experienced professionals. Our background is from both technology and finance, meaning that we can understand the nature of your R&D activities and can then translate this into qualifying R&D expenditure in accordance with the legislation and guidance.

Our clients range from large multinational corporate organisations to small start-ups and spin out companies and we have significant experience across a broad range of industries.  Most importantly, our wealth of knowledge and experience means that we can tailor our work to suit your needs and your organisation. We are happy to work on a contingent fee basis (where our fee is proportional to the benefit actually achieved) so there is minimum risk in exploring the potential benefit. 

Our Services

Our breadth of experience and multi-disciplined team means that we can
provide a range of services to meet our clients’ needs, whether they are
small or medium sized business or large corporate organisations with
global operations.lens

How can we help you?

We provide a range of services and can discuss these with you to find the
most appropriate approach given your claim history, your preference and our
experience of your industry:

Fee arrangements

  • Contingent (dependent on success) - this is by far the most popular option
  • Fixed price
  • Time based at an agreed hourly rate 
  • Contact Us

    Call us on +44 (0)203 740 7172telephone

    Skype ge.ela8 or tl.ela8

    Email us Here

    Often the first step is to have a brief (approximately 30 mins)
    discussion with you to understand at a very high level the company’s activities
    or area of expertise in order that we can give you an idea of how best you can move forward
    with the preparation of a claim.  This initial conference call is entirely free and can even be conducted over Skype if you prefer. For this briefing call it is important to have some basic details available and also to have on the call, where possible, the most senior person available who understands the technological activities of the business (see below).

    Alternatively, you can drop us an email with your contact details and any specific queries you have and we will get back to you.  If you just want a quick opinion on whether you are likely to be doing eligible work, and feel your website gives a good overview of your company, just email this address to us. We will respond with our view and comments on the next steps.

    Basic information that can help with an initial assessment

    About ela8

    image of gareth edwards Gareth Edwards, Managing Director of ela8 limited, was a director of the award-winning Deloitte R&D Tax Services team until April 2007 and since then has worked independently with a wide-range of clients, from international groups to small SMEs, to bring significant benefit to them through the submission of claims for R&D tax relief. Gareth’s background is as an R&D professional and entrepreneur and his continued interest and insight into technology means that he is able to understand the technological challenges faced by his clients and identify how their work meets the criteria for eligibility for R&D tax relief.  Gareth is able to talk to the technical personnel within the business to extract from them the scope and basis for the R&D claims and to assist in presenting this in a way that the tax authorities will understand and accept.

    Gareth has over 25 years experience of active R&D development, gained in a wide range of industries but specialising mostly in software, microelectronics, telecommunications and medical physics. He held a number of senior R&D posts for major international companies and ran his own SME hi-tech development and manufacturing company, before joining the R&D Tax Services team at Deloitte on its inception in 2003. This experience means he is able to understand and effectively operate with a wide range of companies and environments, and is able to communicate with technical specialists in their own language. He holds an MA from Cambridge University, is a Member of the Institute of Directors, and a Fellow of the Institute of Physics (email Here).

    Teresa Latch's background until 2003 was in law and corporate tax work.  From the introduction of the R&D tax relief regimes in the UK, Teresa worked within the Deloitte team providing a range of services to a client base ranging from the pharmaceutical industry to engineering consultancies, aerospace and defence equipment providers.

    Teresa was one of the initial members of the Deloitte R&D Tax Services team and her experience in this sector since 2003 means that she has developed a good working relationship with HMRC, has prepared a significant number of claims for both SME and large companies and understands the key areas of difficulty that applicants face when putting together their claims, particularly as regards the quantification of the claims.  She is a Batchelor of Laws and undertook her chartered accountancy training (ACA) whilst working for Andersen (email Here).

    For more specific detail as to how we can help, please click Here.

    ela8 limited is incorporated in England and Wales number 6060813 vat reg. 904 1589 31
    registered office The Lantern Tower, Cleeve Howe, Carriage Drive, Windermere, Cumbria LA23 1SA


    Autumn Budget Statement 2014 - Starting 1 April 2015, SME additional deduction to increase from 125% to 130% and Large Company cash credit to increase from 10% to 11%
    2014 Budget...the Chancellor announced that from April 2014 the Government will increase the rate of the payable credit to loss makers under the SME R&D tax credit scheme from 11% to 14.5%. This means loss-making SMEs will be able to claim 32.63% of their qualifying expenditure on R&D in the form of a cash credit.

    The above-the-line 10% cash payment for large companies came in for expenditure incurred after 1 April 2013
    Patent box also applies from 1 April 2013, but initially at just 60% of the rate below, ramping up over four years The patent box eventually provides a reduced 10% corporate tax rate for profits from qualifying patents and applies to all qualifying patents, including historical ones.

    Are you an SME?

    These limits must be considered in the context of the company itself plus any related enterprises. A partner enterprise is any entity which is related by at least a 25% shareholding, and special rules apply where more than a 50% (controlling) shareholding is involved (linked enterprises). The simplest example is where an apparent SME is a wholly-owned subsidiary of a large group, and so is a large company itself for R&D tax purposes. The rules for aggregating the critical metrics are complicated, with some latitude for certain types of investment organisation - it is not always straightforward to determine the company status. Under certain conditions companies can even be linked through common ownership by individuals.

      If you're not an SME, you are a Large Company for the purposes of the R&D tax regime.

    Eligibility Guidelines

    Link to official definition of eligible Research and Development:

    BIS (DTI) 2004 Guidelines explaining the definition of Research and Development for Tax purposes