This is a quick guide to R&D Tax Credits and whether you can qualify and what you can qualify for.
Research and Development (R&D) Tax Credits are an enhanced expenditure tax deduction offered by the government for investing in innovation. They can be a valuable method of cash for businesses to be able to invest in further growth and even more R&D.
Companies that spend money developing new products, services or process or even enhancing existing ones, are eligible to make and R&D Tax Credit claim. If your company is spending money on innovation then a claim can likely be made for either a corporation tax reduction or cash payment. There is a huge scope for claims across many industries and you can often claim for two previous accounting periods if you are claiming for the first time.
To be able eligible to claim R&D Tax Credits, you must:
The R&D criteria set out by the government are purposefully broad. No matter what size or sector you are in, if your company is taking a risk by attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out a qualifying activity. This could include:
SMEs (small and Medium Enterprises) are able to claim up to 33p for every £1 spent on qualifying R&D activities.
Large companies are able to claim up to 11p for every £1 spent on qualifying R&D activities.
If you think you are a qualifying company undertaking qualifying activity then you should book an initial call with us to run through this. you can do that right here