Innovation can generate significant tax benefits for a business, but only if the often-complex process of claiming Research and Development tax relief is successfully delivered.
The services of a chartered tax advisor are invaluable – particularly one like CBTax, where the focus is not only on the financial side of the process but also on the expert knowledge that is often needed to ensure that clients are given advice and guidance that is specific to their particular sector.
Founded in 2018 by twin brothers Chris and Stephen Beale, CBTax has built a solid reputation for implementing best practice. It is already a Top 100 accountancy and tax practice and the fastest growing in the country and is now the second largest R&D tax consultancy firm in the UK, with the stated aim of eventually becoming the biggest and best.
Behind that success is something Chris Beale believes sets the Northamptonshire firm apart – the building of an experienced, professional team that includes sector specialists.
“Just recently we have promoted key members of the team, including Felix Key to the post of Associate Director, and Dainis Adamuks to Senior R&D Technical Consultant,” said Chris.
“Both are qualified engineers and have significant experience in engineering; moving into professional services after wanting to develop their careers in different ways and see the rewards to innovative companies for investing in R&D. R&D tax relief is something that applies to many businesses, in most sectors, that are coming up with new or appreciably improved products, processes or services. The truth is that many companies don’t see how they would qualify, they don’t appreciate how wide the terms research and development are and how they apply to their business, but with the right advice and guidance, from someone who understands their industry, they can identify areas where they can claim tax relief – often very significant sums.
“Having someone with an engineering background, for instance, who can see opportunities for claiming R&D tax relief, to advise our clients in the engineering sector on what areas will qualify and what procedures they need to put in place to put forward a robust claim, makes an enormous difference. They understand the sector and talk the same language as the client.”
Since 2018, CBTax has grown to a team of 25, including specialists in construction, engineering, IT and technology, and food and beverage to name just a few; with further talented individuals due to start early this year. The aim is to have a headcount of 45 by the end of 2022. To begin with, much of the firm’s work was outside Northamptonshire but a concerted effort to work with clients closer to home has seen steady growth within the county.
Firstly, a smart newly refurbished office in a rural location made CBTax an attractive place for clients to visit for a coffee and a free no-obligation consultation, as much as it did for staff adapting to a return to the workplace after pandemic restrictions. Clients also found added value from a team that could not only advise on R&D tax relief but on the wide issue of tax planning that may not always have been addressed in the course of their usual accountancy service.
Chris added:
“Although we specialise in R&D tax relief, we are in a position to offer other accountancy and tax planning services to existing clients. So, for instance, some company directors pay themselves a small salary and the balance as dividends because this is a tax efficient remuneration strategy for a company that is not eligible for R&D relief. What they may not realise is that salaries qualify for R&D tax relief and dividends do not, so they may well be better off changing their remuneration package that will attract more R&D relief and ultimately result in a more tax efficient structure for themselves and their business – a service which is included at no additional cost to clients who are engaging CBTax to deliver their R&D claim.
“All that advice and knowledge is something we want to bring to a wider client base within our own county. This is a tight-knit business community and people talk to one another, especially when they have seen the benefits of a service like ours, which saves the company an awful lot of money, and our growth has been built on word of mouth, and we want that to continue.
“It’s a great area to work in, we love being based in Northampton-shire and we want to do our best to make sure that the businesses here benefit from the tax relief they are entitled to. With a free consultation to businesses that are not already claiming, or even ones that are but are unsure if the claim is as robust as it needs to be, or not potentially being maximised, there is really a no better time to have a conversation with us.”
Find out more about CBTax, or to arrange a free consultation, visit www.cbtax.co.uk or call the team on 0333 455 9010
