Recovering £40,000 in R&D Tax Credits for a well established electrical firm
Published 2 April 2021
A well established electrical firm, was always too busy to consider putting in an R&D claim. That was until he was encouraged to call Recoup by a trusted colleague.
Roll forward one month later, and the firm had received £40,000 in R&D tax credits. Discover how we supported the business using the R&D tax scheme and how the firm plans to reinvest funds to expand their services.
Who is the electrical firm?
Launched in 2004, the electrical firm is an electrical contracting company currently run by based in Newry, Northern Ireland, the company predominantly supports highly-established enterprises such as H&M Clothing, Sainsbury’s, Bacardi and Amazon.
A large portion of the electrical work is carried in retailers’ warehouses for projects such as power and alarm system replacements. Our client usually works alone but does occasionally hire subcontractors for large-scale projects.
A host of innovative projects
Our client has worked on some complex projects over the past few years, all of which leaned on R&D to deliver bespoke and technologically advanced results.
For example, clothing retailer H&M recently brought in the firm to update a power system in its Milton Keynes warehouse.
Our client has carried out similar work before but rarely at this scale, which was one of the biggest installations in the UK to date. Working alongside other specialists, our client helped install lighter power cables that reduce strain on the warehouse’s infrastructure. The project also required careful design work bespoke to the building.
Another large R&D-heavy project was for a Rolls Royce warehouse. Our client assisted with a new extension featuring a storage depot and workshop. The main work was integrating a new alarm system with the existing one. A tricky task – Rolls Royce wanted to keep their workshops open and electrical systems online during the installation.
The process of coming up with a new power solution without incurring downtime required R&D in its design and implementation – work that would qualify the firm for tax relief.
The firms first R&D claim
Prior to working with Recoup, our client had heard of research and development but never gave it much thought. Mainly because he was always incredibly busy with work. He knew past projects had relied on R&D, but he never had the time to look into it properly as his job always took priority.
This changed last year after a phone call with a trusted work colleague. As our client explained: “He encouraged me to look into R&D tax relief as an electrical contractor who frequently works on complex projects. After a little bit of explaining on the scheme and how it works, he gave me the confidence to give Recoup a call. I trusted him to want what was best for me and my business and thought, `What have I got to lose?’”
A quick and simple discovery call
Recoup began working with the firm in September 2020. All it took was a quick Zoom meeting to put things in motion.
“They made R&D easy to understand because of the simple language they used,” said our client. “They explained how the scheme works and what costs were eligible, such as hiring subcontractors and the materials used in the projects we do. At no point did I feel like I was being pushed into a sale. They simply wanted to share information and let me decide what to do with it.
“After unpicking the activities within the business that would qualify for R&D, Recoup gave me a clear list of the information required to process a claim,” continued our client. “I passed on the list to my accountant, and that’s where my input ended. Recoup advised a time frame and seamlessly took over the process. Not a second of my time was wasted – every conversation we had was to the point. As a busy business owner, this was invaluable.”
£40,000 in a month
After facilitating the submission the firms claim, it took one month for the funds to come in – £40,000 in R&D tax credits. Our client has big plans to reinvest the money:
“We’re exploring new areas to enhance our service offering, such as data installation cabling for IT networks. I probably wouldn’t have considered pursuing new business avenues if it wasn’t for the R&D tax scheme and Recoup’s help. It really has opened a lot of doors.”
When asked if he has plans to put in another claim, our client said, “Definitely. If there’s an opportunity to claim R&D tax reliefs in the future, we’ll be using Recoup.”
“Friendly and professional”
The best thing about our clients experience working with Recoup? “The team was very friendly and professional. They made the process straightforward while considering my business and its needs. I never felt like I was being passed from pillar-to-post. I never had to chase anyone. They were incredibly attentive just as they were easy to talk to.”
Think you might qualify for R&D tax relief? Use our free Eligibility Checker to find out.