Turning R&D into ROI: How a Strategic Approach Boosted Cash Incentives

In this case study, you’ll learn how BridgePoint Group, through strategic planning and expert execution, enabled a company to successfully navigate the complexities of the R&D tax incentive, setting the business on a path to sustained innovation and financial stability.

Context

Our client, a company specialising in elevator management systems, was at a pivotal stage of development. The client had spun off from a larger, well-established company. They aimed to conduct research and development (R&D) on new elevator technology platforms. Their goal was to market and sell these platforms to the wider elevator industry. However, they struggled to establish an efficient structure to maximise R&D incentives.

READ: R&D Tax Incentive: from application to cash refund.

Our Challenge

The main task was to position their business to fully benefit from Government Grants and Tax Incentives for R&D. This meant creating a company structure that was efficient and compliant with R&D tax regulations. The challenge grew as the company was referred to BridgePoint Group by an accounting firm without expertise in grants and incentives.

What we did

We undertook several critical actions to address the challenges faced by the client:

• Company Structure: We ensured that the client was set up as a company, rather than operating as a trust or partnership, to maximise eligibility for R&D tax benefits.
• Account and Cost Setup: We assisted in setting up accounts and efficiently coding expenses to R&D ledgers. We also ensured that all contracts with R&D contractors were properly in place.
• Documentation: we established a robust documentation process to capture and tie the R&D activities back to the incurred costs. This meticulous documentation was crucial for substantiating the R&D claims and securing the associated tax benefits.

Learn how BridgePoint Group can help your business maximise R&D Tax Incentive benefits.

Results

The efforts of BridgePoint Group yielded remarkable financial outcomes for the client:

• Financial Impact: In the first year of their claim, the business received approximately $150,000 worth of refundable tax offsets. This immediate financial relief was instrumental in supporting their ongoing R&D efforts.
• ROI: The proper setup and diligent documentation process led to substantial tax refunds, demonstrating the significant financial benefits of adhering to R&D documentation requirements and optimising the company’s structure for tax incentives.

This success story emphasises the importance of seeking expert guidance. Having the right support when navigating complex tax incentives can lead to substantial financial gains.

If you would like to engage an R&DTI specialist to determine whether your company qualifies for it, reach out to Alan Baghdasarayan, Head of Government Grants & Incentives at BridgePoint Group, will provide a free 30-minute consultation.