When Andrew Warne, Chairman of Armadillo Marketing, first learned about the potential to claim research and development (R&D) tax incentives for his digital agency he was sceptical. After all, media companies don't undertake research and development, right? Wrong!

In fact the scope of R&D is not limited to what goes on in laboratories, or making machines go faster. It actually encompasses any company that is taking a risk by innovating, improving or developing a process, product or service.

Other media companies are waking up to the possibilities of R&D tax credits for digital agencies 

After talks with ForrestBrown it started to make sense to Armadillo Marketing. In Andrew’s own words:

“I guess if someone discussed the title with me I would have assumed it was for engineering and scientific companies. But from our point of view it makes us realise that the intellect that we apply to work we do for clients is innovation and research in its own right. We do in our own way create, even though it may not look like a piece of machinery.”

So, having established that media companies are more than capable of qualifying for R&D tax credits let’s look at what that means in numbers.

Up to 225% tax relief

If your project is within the parameters of R&D it qualifies for tax relief off your Corporation Tax bill for up to 225% (the rules do differ for large companies).

Here’s an example:

£10,000 attributed to R&D

£22,500 tax deduction

The numbers really are that simple. The challenge is in recognising the R&D in the first place and submitting the claim. That is where ForrestBrown comes in.

Contact us for an informal chat

Let’s face it, tax can be a daunting subject so we strive to remove the barriers with a friendly, approachable service. Tax specialists Simon and Lisa-Marie would welcome your call to investigate whether they could help you reclaim thousands of pounds. You can call them now on 0117 926 9022 for a free consultation.

Actually it is worth highlighting that there are no charges at all until a successful claim is made so you have nothing to lose and a potentially a lot to gain by getting in touch.

We’ll leave the last word to Andrew at Armadillo Marketing:

“This is the first time in 22 years that someone has come to me with a program that has allowed us to claw something back from HMRC, for which we are immensely grateful. It is going to save us a considerable amount of money over the years and as a consequence help drive innovation and employment.”

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