R&D Case study: AI & Robotics software company

The Background

A new client came to us for assistance in accounting services. Due to the industry that they are in, providing Artificial Intelligence and Robotics to optimise business processes for their clients, it became obvious that they had developed niche software due to their unique offering. After looking slightly more in-depth it became apparent that the company was eligible for R&D tax reliefs. The company were aware of the scheme but due to a variety of reasons had never pursued a claim.

The Problem

We spent time with the CEO and lead developers to understand the software that had been developed to speed up and revolutionise several manual businesses processes and ensured that every project involved adhered to these. As regulated accountants adhering to ethical standards, we were able to advise them of HMRC’s requirements and build a robust claim with confidence.

The Solution

Research into the client’s past tax years established that no R&D claim had ever been made. So working on behalf of the client we were able to retrospectively make a claim for the previous two accounting periods.

The company is very profitable and as a result has a large corporation tax bill. The R&D tax relief awarded has gone towards saving over £300k in corporation tax in the first year, and it is anticipated that this will follow in years to come as the company grows and becomes more profitable. The company’s intentions are to reinvest the monies received back into R&D activities.

Our research into the client’s industry, knowledge around R&D tax relief and the fact we are regulated by the accountancy code of ethics meant that we were able to encourage a hesitant client in applying for, and receiving, a large tax relief for their niche R&D services.

The client said:

“We are grateful for Wilson Partners knowledge and confidence in encouraging us to claim for R&D tax relief. The payment received will enable us to take great strides into further R&D and push the company’s growth plans forward.”

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