RESEARCH & DEVELOPMENT TAX SERVICES
Companies involved in qualifying R&D activity may claim additional tax relief on certain costs incurred directly in the R&D process.
HOW TO CLAIM R&D TAX CREDITS
Designed to encourage companies to develop new technologies that substantially improve their products, processes, devices, materials and/or services, R&D tax credits can significantly reduce your company’s corporation tax, and even get you some cash back.
The majority of business owners entitled to claim R&D tax credits are totally unaware that they can make a claim. There is a myth that R&D tax credits are only for bio chemists or rocket scientists. However, our specialists accountants for the research industry can confirm that this is certainly not the case. In reality, most industries and business sectors are able to claim tax credits.
Considering that R&D tax relief can deliver a repayment of 24.7% of qualifying costs for small and medium-sized companies, it’s certainly worth exploring. 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
Below is some of the important information you need to consider when claiming R&D tax credits, as well as how we can help you with the process.
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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