Companies already making R&D tax relief claims are familiar with the benefits of doing so, either a tax reduction or a cash credit. For directors and shareholders this benefit may translate into a bonus or additional dividends. However staff may not be aware of the benefits of making an R&D claim, or if they are they may not see it as beneficial to themselves.
It is important that all staff are aware of the benefits of making an R&D tax relief claim, both for the company as well as for themselves.
Why Involve Staff?
Your employees may be carrying out the R&D activities, and so are best placed to discuss these with your R&D adviser. Employees not engaged in the R&D claim process may be reluctant to spend time discussing their work, as they do not see the benefit, or feel their day to day job is their priority.
By highlighting the benefits of R&D tax relief your staff may be more engaged in the process. This will encourage them to discuss their work with your R&D adviser. The more information your adviser has the better your R&D claim will be.
Additional Investment
The tax saving, or cash credit, as a result of an R&D tax relief claim may be used for additional investment. This investment is often in the form of additional staff, staff training or new equipment, all of which will benefit your employees. If your employees are aware of the relationship between the additional investment and the R&D claim they are more likely to be engaged in the claim process.
By investing in staff training your staff will be given the chance of career progression, and the company will in turn benefit from a more highly skilled workforce.
The additional investment can lead to further R&D projects, meaning subsequent R&D tax relief claims are larger.
Staff Morale
By encouraging a culture of innovation you will attract and retain high quality staff. People enjoy the opportunity to work on cutting edge projects, keeping them engaged and motivated.
Often staff are best placed to make suggestions regarding improvements to products and processes, as they work on these on a daily basis. If staff feel able to make suggestions, or try new things, a culture of innovation can be developed. Staff will also feel valued if their suggestions are both listened to and acted on.
Our team has sector specialists who can discuss the technical aspects of the projects with your staff. They can then translate this into a report written in a way which HMRC can understand. We can also work with your employees to enable them to understand which projects will qualify for R&D.
Contact us on 028 9040 6295 to discuss how we can help encourage your staff to engage in the R&D claim process and provide training workshops.