Tameside Manufacturer Unlocks Over £100,000 in R&D Tax Relief
A Tameside-based manufacturer, with an annual turnover of approximately £25 million, had never previously claimed R&D tax relief. The company contacted sjRD Tax for an R&D eligibility review. Following a detailed assessment of its activities and expenditure, we quickly identified £550,000 of qualifying R&D costs that had previously gone unclaimed. By identifying these eligible costs and preparing the claim, sjRD Tax helped the business secure over £100,000 in tax relief.
Key results:
- £25m annual turnover
- £550k qualifying R&D expenditure identified
- £100k+ tax relief secured
- First-ever R&D tax claim
R&D Tax Relief: Automotive Manufacturer Success
A high-precision automotive components manufacturer, specializing in braking systems and engine mounts for global OEMs, successfully claimed £145,000 in R&D tax relief. Despite their intensive technical work, the company had previously overlooked the qualifying nature of their internal testing and prototyping processes.
Key Outcomes for the Manufacturer:
- £780,000 in qualifying expenditure identified across three financial years
- £145,000 total tax saving secured via the SME R&D scheme
- Identification of qualifying activity in light-weighting research and emissions reduction technologies
- Professional R&D report prepared by sjRD Tax to safeguard against HMRC enquires
The technical challenges involved in achieving stricter tolerances and integrating new materials into existing production lines were key to proving eligibility. This cash injection has since been reinvested into a new CNC machining centre, further enhancing the business's competitive edge in the global automotive supply chain.
Loss-Making Businesses Can Still Benefit
If your business is loss-making, you may still be able to benefit from R&D tax relief. Depending on your circumstances and the R&D scheme you qualify for, your company may be able to surrender qualifying losses for a cash tax credit, providing a valuable cash injection into the business. For businesses under pressure to manage cash flow, this can make a significant difference—helping to fund future development, staff, equipment and ongoing R&D activity. Even if you aren't currently paying Corporation Tax, your R&D could still have cash value.