Research and Development Tax Credits
HMRC introduced R&D tax credits in 2000 as a way of incentivising businesses to develop their range of products and services.
Although R&D tax credits have been around since 2000 they have increased over the last number of years, this means that in most cases a successful claim under R&D tax credits will have a significant impact on the company involved. Unfortunately this incentive is not being used in many cases or if it has been used, not to its full extent.
In the current year companies are allowed to deduct up to 200% of qualifying expenditure for tax purposes. In addition to this they can also go back three years. The size of the credit depends on the size of the company and the number of activities that qualify. You can even claim if the company is currently loss making.
R&D tax credits can be claimed by any company who spend money and/or resource on trying to improve or develop a new product or service, even if it is unclear that product or service is going to work.
So how does it work?
Meet and identify eligibility.
Identify people & costs involved.
Create a report.
Submit to HMRC for approval.
The process is straight forward and designed to impact your business as little as possible throughout.
Talk to us today to learn if your company could benefit from R&D tax credits.
