EY Breakthrough Incentives

In Tax

Helping small-and-medium-sized enterprises (SMEs) who are producing innovating ideas within their sector to claim R&D tax relief as additional government support. We have filed over 1,500 claims to date and have claimed millions of pounds for SMEs. 

What EY can do for you

EY Breakthrough Incentives, formerly known as Breakthrough Funding, works with innovative SMEs who are changing the way they do business and helps them to claim R&D tax relief from the Government. We are an entity owned by EY, which means we can maintain our relatability to the SME market whilst benefiting from the size benefits that come from being part of the Big Four.

We have over 1,500 successful claims to date, helping SMEs obtain millions of pounds in additional support. Marrying the resources of EY to an award-winning independent tax consultancy, means we know how to help your business gain access to much needed government funded tax relief.

SMEs are the lifeblood of the UK economy and during these challenging times, these incentives are more important than ever.

The R&D scheme

R&D tax relief is one of the biggest funding mechanisms for SMEs investing, researching and developing innovative projects in their sector. Even if the project doesn’t work out, a company can still claim.

How do you know if your project could qualify for R&D tax relief? If you or your company is looking to advance in technology, or science, or has to overcome an obstacle that is uncertain and can’t be easily solved by professionals in the field, then you could be eligible.

You can claim SME R&D relief if your company is:

  • An SME with less than 500 staff 
  • An entity with a turnover of under €100 million
  • A limited company

How we help SMEs gain access to R&D tax relief

It starts with a qualifying call, one of our experienced consultants will be in touch to discuss the journey you have been on and ask questions to establish what it is you have been creating. Following a technical review, we’ll then write a report for HMRC explaining your story. 

Whilst this is happening, we will request certain figures to establish your qualifying expenditure. This includes: 

  • Staff salaries
  • Cost of materials used on the project
  • Any sub-contractor costs you may have in relation to your project

Over the last five years, we have successfully submitted over 1,500 R&D tax relief claims. Below is a selection of client innovation examples that with our help have benefited from this scheme: 

  • Developing bespoke new processes, machine modifications or significant factory process improvements to make manufacturing of engine parts more efficient or effective.
  • Developing new materials for the manufacturer of high-performance sportswear.
  • Developing technology for new low-cost wireless charging points.
  • Designing algorithms and artificial intelligence to deliver new functionality for gaming programmes.
  • Designing voice recognition technology for use in automated foreign language translation.
  • Trying to develop a temporary flood prevention system for heavy rainfall, tidal surge or ‘rapid melting snow’ scenarios.
  • Designing new technologies and methods of working to make utility supply cheaper and more efficient.

A practical way to think whether you might be eligible for R&D tax relief is to ask yourself if you’re solving problems or your competitors would want to appropriate your product or its design? If yes, then you could well be eligible for R&D tax relief.

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