Saving Money with R&D Tax Credits
Since its introduction, billions of pounds in R&D tax credits have been claimed by companies, reducing their corporation tax bill each year. However, it’s believed that 90% of eligible businesses are failing to claim the relief they’re entitled to, so you could be missing out.
How R&D Tax Credits Can Help You Save Money
Introduced in 2000, the R&D tax claims for businesses scheme was brought in to reward companies for innovative projects with the aim of making the UK more competitive in Science and Technology. It’s one of the most rewarding schemes to be part of because those investing in R&D can apply their research to new projects, growing their business or improving their processes, thus creating a positive business cycle.
Not only can you develop your business through innovative projects, but the scheme can help you reduce your project costs. Businesses can save money with R&D tax credits by receiving reductions on their corporation tax bills or if they’re not making a taxable profit, cash rewards. This can be a substantial way to boost your businesses finances.
ELIGIBILITY
To qualify for the R&D tax credit scheme, you must be the type of company who is liable for corporation tax even if you’re not making a taxable profit. Businesses across a range of industries make claims, not just those specifically in science and technology fields. However, your project must be innovative with uncertainty involved when undertaking. By this, we mean a new or improved product, service or process that no expert in the field currently has the knowledge or capabilities of doing. Whilst this may seem complex, it could actually be as simple as enhancing a product, creating an innovative process or creating a service not currently available in your current sector.
HOW MUCH CAN I RECEIVE?
If eligible, calculating how much you could receive differs between organisations, but small and medium enterprises (SMEs) can claim more than larger organisations, and there are different schemes for each. For SMEs, who make the majority of R&D tax claims, you could be saving up to 26p per pound if profitable, or up to 33p per pound if you need to make a cash claim. As you can imagine, this can significantly boost your business finances if successful.
HOW TO CLAIM
In order to claim, you’ll need to highlight all the areas in which you spent money on research and development and prove the eligibility of your projects. This involves applying for R&D tax claims through the HMRC and can be quite a complex procedure. That’s where specialists such as R&D Tax Solutions can help.
USING A SPECIALIST SERVICE
When looking at how to boost your business finance, R&D tax claims provide companies with the reward they deserve after investing in innovative research. However, many don’t claim because they’re unaware of the scheme, they don’t think they’re eligible, or they’re put off by the HMRC application process.
Here at R&D Tax Solutions, we’ve helped hundreds of companies recover millions in tax relief, and thus far we’ve had a 100% success rate. We specialise specifically in this area, so are the experts in every part of the legislation and can guide you through the process from start to finish. This includes assessing your eligibility and making a claim. Our friendly Manchester-based team would love to hear from you to help you boost your finances.
To discuss eligibility or to have a chat about your needs, get in touch via one of the following methods. Callus on 0161 298 1010 or email office@rndtax.co.uk.