It is no surprise that the engineering sector is one of the most widely claimed industries for R&D tax credits; whereas many sectors are unaware of the incentive or wrongly believe they do not qualify, many established engineering firms are familiar with the benefits of the R&D mechanism.

However, while lots of organisations in the engineering sector are recovering their costs through the incentive, their recovery is often a fraction of what they are entitled to. From our experience, we’ve found companies in the sector are identifying “obvious” R&D expenditure, such as staff costs and material costs, but many less obvious costs are erroneously excluded.

Also, in many instances, applications are submitted without a supporting report detailing the R&D activity. While it is not a requirement from HMRC to provide this supporting information (unless the application is queried), submitting an R&D application without a report can expose the company and increase the likelihood of a query.

If you operate in the engineering sector, and are unsure whether you’re getting everything you’re entitled to, without exposing yourself, ask these questions;

  • Has what qualifies and what does not qualify been explained?
  • Do I have a robust technical report that details my activity?
  • Have I been guided through the process of identifying eligible expenditure?
  • Will the application be defended in the event of a query?
  • Do the costs I’m recovering seem reasonable in comparison to my R&D activity?

If any of these questions are answered with a no, you may not be benefitting from the full breadth of the R&D incentive. If this is the case, please do get in touch, one of the team would be more than happy to assist! 

Apogee Associates R&D Tax Credits

If you believe you are still leaving money on the table or would like a FREE review of your existing application, fill in the contact form below and one of our team will be in touch!