Construction

R&D Tax Case Studies

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ConstructionAll Sectors

Gaysha Building Services

Building Firm

The company is a large scale building firm who work mainly in the Hospitality sector. They had completed over 60 large scale projects and attempted to innovate on many internal projects in the tax year in question.

RSL came in and helped them to analyse their projects, identifying 3 they had undertaken which amounted to a tax saving of £45,000 in that year.

How does it work?

In the example the business has spent £180,000 in qualifying Research and Development Tax expenditure.

This expenditure is multiplied by 130% to give the enhanced expenditure amount of £234,000.

The enhanced expenditure is then subtracted off of the company's profit figure of £430,000. This leaves the company with a reduced profit level before tax of £196,000.

This reduces their Corporation Tax bill from £81,700 to £37,240, resulting in a total tax saving of £44,460.

Location
Building Firm
Turnover
£10m
Location
Profit Making
Location
UK Wide

R&D Calculation

Profit Making Business
Company Info
Company Turnover
£10m
Original Taxable Profit
£430,000
Corp Tax Bill Before R&D
£81,700
R&D Expenditure
Staff Costs
Materials
£50,000
Subcontractor Costs
(@65%)
£0
Agency Workers
(@65%)
Software
£130,000
Total Expenditure
£180,000
R&D Calc Figures
Enhanced Expenditure
£234,000
(@130%)
Reduced Profit Level
£196,000
Corp Tax Bill After R&D
£37,240
Total Tax Saving
£44,460
*Please note these figures are representative of the claim. We do not put exact details of previous clients online.

R&D Calculation

Loss Making - Carry Forward/Back
Company Info
Company Turnover
£10m
Original Loss Made
£430,000
R&D Expenditure
Staff Costs
Materials
£50,000
Subcontractor Costs
£0
(@65%)
Agency Workers
(@65%)
Software
£130,000
Total Expenditure
£180,000
R&D Calc Figures
Enhanced Expenditure
(@130%)
£234,000
Total Effective Loss
Total Tax to Carry Forward/Back
*Please note these figures are representative of the claim. We do not put exact details of previous clients online.

R&D Calculation

Loss Making - Tax Credit
Company Info
Company Turnover
£10m
Loss Made
£430,000
R&D Expenditure
Staff Costs
Materials
£50,000
(@65%)
Subcontractor Costs
£0
(@65%)
Agency Workers
Software
£130,000
Total Expenditure
£180,000
R&D Calc Figures
Enhanced Expenditure
(@130%)
£234,000
Total Effective Loss
Tax Credit
(@14.5%)
*Please note these figures are representative of the claim. We do not put exact details of our clients online.
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