Ilyas Patel Chartered Certified Accountants

Research & Development Tax Credit Claim … Watch Our Short Video !
The tax relief that can be obtained on your Research and Development expenditure can be worth up to 230% of the actual cost you have incurred.
When the word 'research' is mentioned to companies, it conjures up a vision of scientists, engineers, or any other person engaged in technical and scientific work crunching numbers or tinkering around test tubes. ... But in fact, R&D equally applies to any technological developments. They don't have to be an obvious feature of an end product as the 'development' side can be a technical improvement in any process including service industries.
For example, a bakery installed a bespoke fully automated pizza base facility and this together with their in-house expertise, they were able to develop a number of pizza base recipes to create crusts that rival the traditional Italian base.
They were unaware of the Research and Development Tax Credits and thought they would not be eligible based on a conversation with their existing accountants. We made them aware that any company could claim R&D Tax Credits so long as they incurred costs associated with improving a process.
£52,000 cash refund was received from HMRC by the company within 28 days of our technical report and calculations being submitted.
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Exotic Dancer’s Tax Return …
In the case of Daniels v HMRC, a self-employed exotic dancer's expenses went under scrutiny by HMRC where she spent £8,629.48 on clothing, underwear, cosmetics and hair extensions. Expenses considered by the tribunal as wholly and exclusively for Ms Daniels’ business:
... • Clothing & Shoes - The clothes she wore were long, see through and were frequently decorated with sequins so they shine under the lights. Her costumes also include 'nurse' and 'schoolgirl' uniforms for fancy dress evening. The shoes she wore were six to ten inch stiletto heels and were made so that it was possible to hang upside down from a pole during performance.
• Cosmetics & Perfume - Ms Daniels' makeup has to be in over the top manner in order to last the whole evening. She also claimed that she did not wear this makeup outside her work. She also said that she did not wear perfume other than for her performances as she did not want this perfume to feature in her everyday life to remind her of her dancing job.
• Hairdressing & Beauty Treatments - These expenditures were incurred to enhance her appearance for the purposes of her performance. It may have been that her appearance in her everyday life was also changed by these, but that was not the sole purpose of incurring these expenditures.
Ms Daniels only had to pay penalty for the incorrectly claimed travelling expenses as everything else was incurred wholly and exclusively for the purposes of her performance.
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Another successful story of R&D Tax Credit Claim of £109,000 for a company with niche expertise in design, development and installation of various coating systems.
The company’s development project involved a large new build leisure complex that was designed around the principles of sustainability and low environmental impact.
The building’s roof coating system required a need to serve a multitude of environments to include foot traffic from hundreds of animals, animal excrem...ent and resultant corrosive action to the materials on the roof and hundreds of tons of soil weighted on the system.
Their research and development activities were all identified when the company director approached us for a possible R&D Tax Credit claim regarding their project. After 28 days of our technical report and calculations being submitted to HMRC, the company received the £109,000 cash refund.
For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided below: https://www.taxexpert.co.uk/rd-tax-calcul ator/ #TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC #cosmetics #IT #taxplanning #webdevelopment
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Don't Lose Out On State Pension … Watch The 15 Second Video !
Parents are at risk of missing out on their future state pension. This is as a result of childcare commitments where one parent does not work and the other is the higher household earner and claiming child benefit.
If you are one of the affected, you can transfer National Insurance credits between you and your partner. You can also either change the child benefit claimant from the earning parent to the parent with low or no income.

Another successful story of R&D Tax Credit Claim of £2,840 for a cosmetics company that has addressed the underlying issue of harmful ingredients used in beauty products.
The company initiated a development project in which they can produce a skincare and cleansing range that was ethical in every possible way without compromising on luxury and quality.
Through this project, there were able to develop a formula of innovative and revolutionary skincare range; Innovative due to... the powerful, all-natural ingredients used in the products to deliver luxury and nourishment; Revolutionary because as well as being paraben and SLS fee, the skincare products are all halal.
Their research and development activities are all identified through our brainstorming session with the company director. Her research and development project was inspired by her own personal experience and this was rewarded by receiving £2,840 cash refund. If you are a small business like the above and wanting to make claim, please don’t hesitate to contact one of our tax experts 01772 788200.
For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided below: https://www.taxexpert.co.uk/rd-tax-calcul ator/ #TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC #cosmetics #IT #taxplanning #webdevelopment
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Property Allowance For Landlords … Watch The 15 Second Video !
You can be missing out on the tax-free allowance that came into effect in April 2017. This gives the property owner £1,000 of tax relief on their rental income.
• Income of less than £1,000 - You can use the full relief from income tax if your relevant property income in the year is less than £1,000. Therefore, there will be no income tax to pay and you also don't need to register with HMRC of file tax returns.
... • Income of more than £1,000 - If your property income exceeds £1,000, HMRC allows for so called partial relief. Therefore, you can choose either to: o Deduct your actual property business expenses from your income in the usual way o Elect instead for the £1,000 property allowance as a deduction from income If you claim for the partial relief, you cannot deduct any other expenses, just the £1,000 allowance.
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Save VAT On Buying Goods For Personal Use … Watch The 15 Second Video !
When it comes to completing VAT returns, you can't reclaim any VAT for a purchase which isn't for your business. However, if a purchase is of consumable foods or services such as stock or broadband, you can reclaim the VAT corresponding to the proportion of business use.
If the goods are equipment where there could be varying business and private use, there are two ways to account for the VAT:
... • Method 1 – Reclaim some VAT o You should use this method if you have a reasonable idea of the proportion of business and private use, and only reclaim VAT in proportion to the expected business use.
• Method 2 – Reclaim all the VAT o If you expect that there will be some business use, you can reclaim all the VAT on the purchase and then pay some only when you use the equipment for private use.
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This week’s success story is a R&D Tax Credit Claim of £16,000 for a website specialist that developed a bespoke website and quotation systems for their clients.
A client required a website that would allow their users to create and design their own product. This involved producing and modifying a form plug-in that was compatible with the company’s applications. As a result, the client’s website has seen a rise in their customer base and an increase in ‘click-through’ rate.
A...nother client required a quotation system that would allow its customers to pay for their products in a traditional way or request for a quotation. The company modified and re-written HTML/PHP/CSS in the design and application in order for the quotation to be integrated into the website. This system therefore provided the client with a viable option in providing better service.
For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided below: https://www.taxexpert.co.uk/rd-tax-calcul ator/ #TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC #webdevelopment #IT #taxplanning
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Travel expenses are allowable for tax purposes if: • You make journeys in the performance of the duties of your employment. • You make journeys from a place you have to attend in the performance of your duties. This can include trips from your office or other work location to visit a customer, or supplier, or other 'temporary' workplace.
Temporary workplace is somewhere you would attend irregularly for a limited period of time. This can also be tax deductible.
... A workplace cannot be classified as 'temporary' if you attend it for a period of continuous work lasting more than 24 months in which the duties of the employment are performed to a significant extent at that workplace.
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This week’s success is a turnaround story of one of our clients.
Our client had a specialist software to manage bookings, work completed and sales. This software could also be used for bookkeeping. The client had no bookkeeping experience but they were still completing the VAT returns using this software and another manual bookkeeping system alongside. The information recorded was inconsistent and incomplete.
The bookkeeping was in disarray, with missed, duplicated and late ...entered information. The VAT returns were submitted manually and would not meet the MTD requirements that are coming into force. When completing the financial accounts, it took weeks to unravel the data and prepare reconciliations. This led to an increase in fees compared with similar companies with efficient systems in place.
Due to the ingenuity of the team at Ilyas Patel Accountants; Xero and Auto-Entry were introduced. This saved the client time and money. They still maintain their sales and debtors through the specialist software and everything else is done through Xero and Auto-Entry via our office. This has made the VAT returns more accurate, as missing supplier invoices are easily identified.
Additionally, their fees have reduced dramatically as it takes less time to complete their accounts.
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Subsistence Allowance … Watch The 15 Second Video !
Sole traders and partners can claim tax relief for subsistence if the expenditure is incurred as business travel or an overnight business trip, 'itinerant' trade wherein you trade from one location to another or travel to the destination where it is outside the normal pattern of travel.
Company owners and employees can claim tax relief for subsistence if the expenditure is incurred with business travel or an overnight busin...ess trip. You can claim daily fixed rate deductions according to HMRC scale rate, but only limited to 3 meal rates on one day or 24-hour period. o Breakfast rate - up to £5 o One meal (5 hour) rate - up to £5 o Two meals (10 hour) rate - up to £10 o Late evening meal rate - up to £15 The company or your employer may reimburse your for costs incurred according to their own policy.
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This week’s success story is a R&D Tax Credit Claim of £23,000 for an independent decorators merchant.
The majority of the claim was due to the company’s continual effort of exploring new technologies to deliver cutting edge innovative products. They focused mostly on specialist coating products in order to meet the particular demands of the UK market.
Through our brainstorming session with the key directors, we were able to identify the core research and development activiti...es that qualify for the claim. The company has developed their own new range of products that has enabled the business to remain competitive and to open up new market opportunities.
Not only did the company gain competitive advantage but they were also able to receive £23,000 in tax credits that they can reinvest in their research and development activities.
If you are in a similar situation or you think you have business activities that qualify for Research and Development Tax Credit claim, contact one of our tax experts at 01772 788200.
For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided below: https://www.taxexpert.co.uk/rd-tax-calcul ator/ #TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC #foodanddrink #bakeries #webdevelopment #IT #chemicals #food #taxplanning
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Tax Collectors And Inspectors … Watch The 15 Second Video !
Self Assessment is used to collect tax from the self-employed, directors of a limited company or if you are a business partner. This is due for filing on the 31 January 2019.
Under file now, check later, HMRC will check your return after you submitted it. If you meet a tax collector, they are most likely to be part of HMRC Debt Management and Banking or a bailiff.
... If you meet a tax inspector, it is highly likely that this visit is due to submission of an employer's PAYE return or a VAT return. Under Self Assessment, HMRC will open an enquiry into your tax return and a visit may only come later on in the enquiry. If there are any unannounced visits to your workplace or home, these are generally connected with fraud and are very rare.
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Another successful story of R&D Tax Credit Claim of £32,850 for a company that develops skin care products.
Through our brainstorming session, we identified that the company’s organic and recyclable toiletry collection and its new products qualified for cash refund under the HMRC R&D Tax Credit scheme.
We computed detailed calculations and compiled a full schedule of eligible costs incurred in developing these products. After the completion of our technical report showing t...he development of the new products, our client’s claim was successful and repayment was received within 28 days.
Furthermore, we were able to go back two years and claim the R&D Tax Credit.
We have an excellent working relationship with HMRC and a 100% success rate of claims paid out. Furthermore, we will carry out work on a success fee only basis, so you have everything to gain and nothing to lose.
For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided:
#TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC #ResearchandDevelopment #TaxCredits #RD #CorporationTax #FoodandDrink #Bakeries #WebDevelopment #TaxPlanning
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Spend £300 Per Employee On A Great Party ! … Watch The 15 Second Video !
Did you know that you can spend £300 per employee on a great Christmas party and charge the cost through your business ?
STEP 1 – The Christmas party or event must be open to all employees to attend. You have to hold an event in order to reclaim costs against your company. You can't simply make a cash claim for £150.
... STEP 2 – The cost per employee should not exceed £150. This includes the accommodation, transport, food and drink. You can split this £150 allowance into multiple events throughout the year as long as you don't exceed the allowance.
STEP 3 – All employees including yourself are entitled to bring one family member or a partner who will also qualify for an additional £150. This adds up to £300 allowance per employee.
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This week’s success story is a R&D Tax Credit Claim of £19,400 for a motor repair garage.
In order to qualify for the R&D Tax Credit claim, the garage developed testing tools and techniques to remain competitive in the market and to also open up new market opportunities. They also developed and pioneered tools which increased the accuracy of complex induction systems and improved the assessment of mechanical efficiency of a vehicle engine.
All of these were identified throu...gh our brainstorming session and have been included in our technical report. £19,400 cash refund was received by the company within 28 days of submitting the report.
If you are in a similar situation or you think you have business activities that qualify for Research and Development Tax Credit claim, contact one of our tax experts at 01772 788200.
We have an excellent working relationship with HMRC and a 100% success rate of claims paid out. Furthermore, we will carry out work on a success fee only basis, so you have everything to gain and nothing to lose. For a FREE assessment of how much you could be claiming, you can use our online calculator on the link provided below: https://www.taxexpert.co.uk/rd-tax-calcul ator/
#TaxExpert #RandDclaim #Research #Development #Success #RandD #HMRC
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Unexpected VAT Bonus on Motor Expenses … Watch The 15 Second Video !
VAT rules for cars used in your business are generally strict. However, on certain motor expenses, HMRC are surprisingly generous.
When it comes to the cost of repairing and maintaining your car, the VAT rules become interesting. HMRC allows you to reclaim 100% of the VAT paid on this sort of expenditure even when you use the car for private use.
... This does not only apply to cars owned by your business, it also applies to cars personally owned by you if they are used for business journeys.
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HMRC New 'Snooping' Powers … Watch The 15 Second Video !
From April 2018, VAT-registered business with a taxable turnover in excess of £85,000 will no longer be able to keep manual records due to the HMRC's new Making Tax Digital (MTD) regime.
What Does This Really Mean To You :... • You will need to use accounting software that integrates with HMRC's system. • Dividends will need to be digitally reported to HMRC each quarter. • HMRC will have a full visibility of overdrawn director's account and might seek to collect corporation tax at 32.5%. • HMRC will have the ability to obtain some information directly from other sources such as banks and employers.
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