RESEARCH & DEVELOPMENT TAX SERVICES
R&D Tax Credits are an HMRC UK tax incentive that was set up in the year 2000. It is designed to encourage companies to invest in innovation.
HOW TO CLAIM R&D TAX CREDITS
There is a common misconception that R&D tax credits are only available for biochemists or rocket scientists, meaning most business owners are totally unaware that they can make a claim. The system is designed to encourage companies to develop new technologies that substantially improve their products, processes, devices, materials and/or services. If approved, the credits can significantly reduce your company’s corporation tax and in some cases even get you some cash back!
When you consider that R&D tax relief can deliver a repayment of 24.7% of qualifying costs for small and medium-sized businesses, it’s definitely something that is worth investigating. Our team of specialists are more than happy to assist you with the whole process, making sure that you maximise any return that you’re entitled to. But remember, a claim must be made within two years of the expenditure being incurred, depending on the date of your company’s accounting year-end.
Key Information & How We Can Help
We’ve grouped together some of the important information that you need to consider when claiming R&D tax credits. Simply click on each option to find out more.
In simple terms R&D tax credits enable companies that incur costs in developing new products, processes or services to receive a cash payment or to reduce their corporation tax payments. In 2015 the average claim for an SME over a given year is in excess of £40,000. Whether you have a profitable or loss making business the R&D tax credit is a viable way to reduce your tax bill and or realise a cash bonus.
R&D tax credits are viewed as a viable funding option for many businesses – as up to a third of the businesses R&D spend could be made available as a cash repayment. This is a very generous HMRC incentive that only a small percentage of eligible businesses are currently taking advantage of.
To qualify the company needs to be UK based and the spend needs to be directly identifiable as being related to R&D, again something your accountant can assist with. The Government is encouraging claims from businesses operating in the UK as it is striving to make the UK the most attractive place to start and invest in innovative companies.
A simple way to check it to consider the following:
Do you spend money on improving or developing a new or current process? The answer is most probably yes and you are then most likely able to work with our specialist accountants for R&D companies in order to reclaim a significant proportion of these costs against your corporation tax due.
You can claim any of the following costs that were related to your R&D process:
- staffing costs
In the area of R&D tax relief we can assist with:
- Establishing whether projects and expenditure qualify for relief
- Confirming the rate at which relief should be claimed
- Assisting you in identifying qualifying projects
- Preparation and submission of claims to HM Revenue & Customs and dealing with any subsequent queries
- Securing payments / repayments of corporation tax where appropriate
- Working in partnership with you to maximise claims thereby reducing the overall costs of the project to you
We have a strong track record in agreeing successful R&D claims with HMRC thereby delivering tax savings for companies.
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