Has your business started claiming for R&D Tax Credits?
It is often the case that, for businesses not yet claiming the R&D tax credits they’re entitled to, the reason comes down to either lack of awareness or misconceptions about who can claim. Raising awareness of R&D tax credits has been fundamental to the success of the Government scheme, and thankfully more and more businesses are becoming aware of the advantages. However, many are simply confused by what work is applicable for a claim to be successful, and thus find themselves making excuses for not claiming what is rightfully theirs.
At R&D Tax Solutions, our team of experienced R&D tax experts understands the complexities of making a claim better than anyone, which is why we have crafted this post in order to dispel some of the most common misconceptions that lead to claims not being pursued.
1. Our work doesn’t qualify
Perhaps the most common excuse for not making a claim revolves around the fact that the company involved doesn’t consider their work to qualify for the tax credits. It’s easy to assume that R&D credits apply only to those businesses engaged in scientific or medical research, but the reality is that the reach of R&D stretches far beyond the boundaries of these two sectors. In fact, to be eligible, businesses simply need to demonstrate their investment in R&D ‘seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.’
2. It’s too complicated
OK, any Government, HMRC, and tax-related scheme is unlikely to be wholly straightforward, but that’s not to say there’s so much red tape and administrative work that you can’t overcome your concerns. The scheme has evolved significantly over the years, with the actual process being greatly simplified. Filing your own claim is easier than ever and, with plenty of experienced R&D tax experts available to consult or even manage your claim wholesale, being able to reclaim tax credits for the research work in which you’ve invested can be achieved with a greater level of success.
3. We’re too busy
Running a small business isn’t easy. We understand that managing an SME means wearing a number of different business hats, eating into your time and affecting the the efficiency of your work. That said, it is possible to still claim for your R&D tax credits without having to sacrifice more of your time. R&D tax specialists will take on the responsibility of ensuring you meet the necessary criteria, will identify all the qualifying costs for which you can claim, and help prepare all the relevant documentation to support your application. Meanwhile, you can continue to focus attention on undertaking other business-critical actions.
4. We made a loss so we can’t claim
You’ll doubtless be pleased to know that simply making a loss when involved in research and development activity is no hindrance to making a claim for tax credits. In fact, you may be able to recoup some of the vital expenditure that enables your business to continue operating. The scheme was established to reward those companies ‘seeking to achieve an advance in overall knowledge or capability’. So, regardless of success of failure, it is the action of seeking to achieve that is reward through R&D tax credits.
If your business fulfils the necessary criteria for R&D tax credits, there really is no reason for not making a claim. The benefits available may ultimately prove essential to the continuation of your company, so ensuring you take the time to look into your eligibility is key.
For more information on claiming your R&D tax credits, or for advice on pursuing a claim, simply contact the experts at R&D Tax Solutions today. Call us on 0161 298 1010 to learn more.