International Businesses and R&D Tax Credits
Our client is a specialist software and systems developer in the medical sector with a number of highly trained employees delivering highly innovative solutions for the sector. The company is wholly owned by an American company, which provides funding to the UK company for its activities. Following a meeting with our client, we suggested that some changes might need to be made for maximising the company’s R&D claim.
How we helped our client
Many R&D businesses in the UK are overseas owned and this can cause particular issues in assessing eligibility to claim. We spent some time with the managing director to discuss how the inter-company finance was to be provided. By creating an obligation to repay the inter-company loan between the parent and subsidiary, we were able to demonstrate that the UK company undertook its work at its own financial risk and that its work was not subsidised. Our work provided peace of mind to our client that they were fully entitled to claim under the SME claim and a repayment of over £75,000 was secured for the client.
For more information or to discuss further, please contact the International Tax – For Businesses Taxperts.