Business Insurance

Research and Development (R&D) Case Study

Overview

Great Annual Savings has a long working relationship with this leading automotive coating specialist, having procured their energy for over three years. Before working with our accountancy partners, the firm had never submitted a Research and Development (R&D) claim before.

Following a tour of their factory, and from speaking to the technical staff involved, it became apparent, unbeknown to the business, that many of the activities they were undertaking would qualify for an R&D tax credit claim.

Solution

Our partners provided the firm with a comprehensive overview of the concept behind R&D and began the process of analysing their current projects to identify any areas where a claim would be applicable.

The analysis of their current practices highlighted a number of projects that involved innovative techniques leading to more efficient processes. One of these included the reduction, on average, of paint usage by 30% and paint thinner by 20%, enabling them to save on energy costs, wastage and environmental emissions.

After working alongside the client’s technical people, experts were able to gather enough information for a thorough report on their R&D activities to be produced.  The team drafted a successful claim in language acceptable to HMRC, defining the key benefits and scope of the R&D work without confusing the matter with too much technical detail.

Benefits

In subsequent years, the firm has worked closely with the company to help them build and record R&D activities within their normal day-to-day activities.

  • In the first year of working with the Coatings company on the R&D claim, the team were able to obtain a substantial refund for them within 5 weeks.
  • The company has now benefitted from an R&D tax credit each year for the last 6 years.
  • The savings have allowed them to Invest into additional innovative projects.
  • Since their first R&D claim, they’ve made savings of over £1m.

Testimonial

“Without the cash generated by the Research and Development Claims, we would not have had enough resources to expand into the new factory and win these new contracts.

We would recommend any company out there who are considering investigating their tax credits to act now. The expert advice we received was invaluable.”

Director, Leading Automotive coating business.

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Paul JohnsonGroup Financial Director

Paul Johnson is very much a home-grown talent.

He joined Great Annual Savings Group in its infancy, fresh from a youth career as a professional footballer with Hartlepool United.  He quickly established a reputation within the business and aced all required accountancy qualifications in the space of four years to become the Group’s Management Accountant.

Several successful projects later, Paul was promoted to Head of Finance.  When the former FD left GAS, he took on the mantle of the business’ most senior finance professional; boasting a string of incredible achievements all under the age of 30.

Quote:

“I have witnessed phenomenal growth at the Group over the many years I’ve worked here and I’m looking forward to guiding the Group into an exciting new chapter.”

Interesting fact:

Paul made his professional debut for Hartlepool United against Bournemouth in the Football League.  Some say Danny Ings still resides in his pocket to this day.

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