Case Studies
Donald Engineering and Design Limited
Donald Engineering and Design Limited are a small engineering firm based just outside Carlisle, which carries out design and development work for companies in the food, composites and road-marking industries.
The firm, unaware of the fact that its work qualified for a significantly enhanced tax relief, were approached by Armstrong Watson in November 2007, with the aim to identify if the company was eligible for the Research & Development tax relief available to companies carrying out qualifying activities.
As a result, Armstrong Watson did indeed identify that the firm had carried out qualifying activities and as a result of the claims prepared by Armstrong Watson, the client saved over £3,000 in tax for the year to 30 April 2007 and over £5,000 in tax for the year to 30 April 2008.
Engineered Assistance Limited
Engineered Assistance Limited are a recently formed engineering firm based in Leeds, which carries out research and development work for a new form of patient handling technology for use in healthcare.
The company has not yet commenced to trade but with the help of Armstrong Watson it has applied to treat its pre trading R&D costs as expenditure qualifying for R&D tax credits. Accordingly, the company will obtain nearly £18,000 in tax-free cash back from HMRC despite that it has yet to pay any corporation tax.
Cash flow for start ups is far more important than profit and this tax credit will be extremely important to allow the company to progress to the next stage of the development cycle.
