Belfast Telegraph

Wednesday 16 April 2014

IT companies can reduce the risk of pre-sales costs

Peter Urey

Question: We are one of Belfast's leading IT companies. We incur significant pre-sales costs when building solutions for clients, which is a risk. Do schemes exist to help us reduce our exposure?

Peter Urey of Fearless Consulting

Answer: Peter Urey of Fearless Consulting, says: "Yes they do -HMRC runs the research and development tax relief scheme. Over 1,000 IT companies have claimed so far.

Your business would qualify because you are resolving what the guidelines call "systems uncertainty".

Assembling solutions from known products (servers, PCs, software, routers) whose performance when integrated together is unknown can be regarded as eligible research and development.

Costs included are concept creation, design, prototyping, testing, validation, process improvement, materials replacement and research.

Corporation tax, National Insurace or PAYE related to these activities (backdated two years) will be considered within the claim.

The relief is due even if the solution does not make it to market.

The EU fund relief for small to medium-sized enterprises with the objective of helping the region achieve international competitiveness.

The target is 3% of GDP as research and development spend. The UK currently spends 1.7% and Germany spends 2.8%

Take-up has been slow but awareness is rising. You can learn more at http://www.hmrc.gov.uk/ct/forms-rates/claims/randd.htm

To learn more about making your claim all you have to do is contact peter.urey@thempagroup.co.uk.