Case Study
A fast-growing start-up that specialises in hardware and software development for wearables
Business Pains
The company received poor advice from their accountants who did not understand the technology or the scheme itself in sufficient detail to provide solid and meaningful advice.
The accountant said they would have to claim under the less generous large company scheme because they had received a grant.
The company needed more money and in a timely manner to fund their R&D.
Premise
The company engaged with MMP first to manage its R&D Tax Relief claims, with a particular focus on reviewing the SME/Large Company status and then submitting the initial R&D Tax Relief claim as quickly as possible.
MMP's engineers carried out interviews with the company's financial and technical staff and carried out a thorough review of the grant documentation.
MMP carefully reviewed the grant documentation and identified that the grant was in fact not notified state aid (state aid notified to and approved by the European Commission (CTA 2009, s1138(2)). So this meant that the company could legitimately claim under the SME scheme. The advice the company had been given by its accountant was incorrect. MMP accelerated its engagement so that the claim could be submitted within the month to help the client's cash flow.
MMP compiled a comprehensive report, detailing how the technology was eligible for the R&D Tax Relief scheme and the methodology used to calculate the eligible R&D figure. This also included an analysis of the grant and why the company was eligible to claim under the SME scheme.
The engineers were impressed with MMP's description of the technology and had only minor feedback on the report. Overall, the time spent by the client on the R&D claim reduced significantly compared to their experience with the accountant that focussed on the financial aspects of the claim process leaving the client's technologist to write up the supporting materials.
Proof
The claim under the more generous SME scheme was promptly paid out by HMRC.
MMP also researched what grants were available for the company, helped them to determine which were best aligned with their R&D, and helped them to understand grant compatibility with the R&D Tax Relief scheme, MMP then helped them to form a consortium and compiled their grant application and supporting materials.
The client continues to work with MMP and the claims have generated hundreds of thousand of pounds in cash for the client to continue and expand their innovative R&D.
When your company is growing fast, you need the best advice so now is the time to start speaking with the experts.
To speak to a consultant Contact us
“top notch people. I've worked them since day one and would not change. They're nice people and great at what they do”.
MMP work with innovative technology businesses across all sectors
Read some further case studiesAre you sure you are getting the best advice? Give us a call or book an appointment to see how we can help.
