Research & Development Tax Credits
Investing in the Financial Future of a Business
In order to qualify for Research & Development (R&D) Tax Credits, a business or specific project must undertake an eligible activity – which can range from the development a new process, machine or software, to making improvements to an existing product or process.
Our partner has developed a simple process which enables businesses to claim these tax credits. Following an initial discussion to confirm the eligibility, they work with each business as a team to uncover the full extent of the qualifying activities, and the related costs of application. This expertise ensures that the claim is robust and can proceed quickly, without any risk.
To find out more about this service, please complete the form and register your interest.
Please complete the form
to register your interest
An Overview of R&D Tax Credits
R&D Tax Credits are a government incentive, designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses, enabling them to invest in accelerating their R&D, hiring new staff and ultimately growing.
These R&D Tax Credits can be a valuable resource – however, many businesses may not realise that the activities which they are engaged in, either on a daily basis or a project basis, are eligible for this benefit.
If the business is creating a product, undertaking extensive design work, or delivering a solution that involves resolving complex uncertainties, then it could be undertaking qualifying R&D activities.
How It Works
We work with each business owner to identify the costs that could be claimed. These are normally costs of staff time, materials, outsourced specialist services and capital expenditure.
The amount of credit is dependent upon the size of the business. For small and medium-sized businesses, the claim is 230% (100% deduction, plus 130% enhanced R&D deduction) of the qualifying expenditure. The can be deducted from the profits chargeable to corporation tax, with any resulting losses being able to be carried forward for future use. If the company is making a loss, then the R&D claim can be surrendered for a tax credit, repaid by HMRC at 14.5% of the claim.
For large companies, a taxable credit of 12% of the qualifying expenditure is applied, which can be offset against the company’s tax liability.
R&D Tax Credits are only available to limited companies – individuals and partnerships are not eligible. The claim can be made at any time within two years of the end of the accounting period, in which the qualifying expenditure was incurred. Even if the project wasn’t successful, a claim can still also be made.
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