R&D Tax Relief |
R&D Tax Relief Explained – What Are They? Who is Eligible? |
R&D Tax Relief |
R&D Tax Relief Explained – What Are They? Who is Eligible? |
Many companies who are undertaking Research and Development are unaware that they are eligible to receive tax relief. Many companies do not even realise they are undertaking Research and Development!
One of the most pervasive misconceptions on this topic is that R&D tax incentives are only for those who undertake scientific research in a laboratory.
Research and Development tax credits are a government initiative, designed to reward and encourage innovation in UK companies and to help grow the UK Economy.
If a company undertakes R&D, then they can take advantage of a Corporation tax refund or reduction, based on the costs of any qualifying projects over the last 2 financial years.
Whether you work in manufacturing, construction, software, or even interior design, if you are attempting to achieve an advancement in your industry, your company may qualify. Remember that R&D does not need to have been successful to qualify and that work undertaken on behalf of a client can also be considered.
A percentage of the overall costs can be claimed back, amount dependent on whether or not you are loss or profit-making, large company or SME etc.
Costs that qualify include:
In November 2015 HMRC introduced Advance Assurance for companies that are claiming or aim to claim Research and Development (R&D) tax relief.
If your company carries out R&D for itself and/or other companies, and don’t forget this covers a very broad spectrum, you could qualify for Advance Assurance. What this means is that for the first three accounting periods of claiming for the tax relief, HMRC will allow the claim without further enquiries.
The Manufacturing, Professional, Scientific and Technical, and Information and Communication sectors continued to have the greatest volume of claims, making up a total of 73% of claims and 75% of the total amount claimed for 2015-16.
T4C are a training provider and business growth specialist with a focus on working with companies to access the funding arena with an aim to aid their growth aspirations. Our sister-brand Access2Funding looks at all aspects of finance for business growth.
Together, we undertake detailed analyses of each business we work with and have a range of in-house experts who can develop further growth opportunities across a variety of areas such as funding, access to finance, tax relief, training, and marketing.
Any organisations who think they may be eligible for R&D Tax Relief or have an interest in learning more about the services we offer can find out more at www.Access2Funding.co.uk or contact us by: