Could your Company be Saving with R&D Tax Relief
In the 2014/15 tax year, over £2billion of claims were made by those businesses eligible for the Research & Development (R&D) Tax Credits. This Scheme was brought in by the Government to encourage and reward innovation in the UK’s Science and Technology fields to ensure we become more globally competitive.
Those eligible can make huge savings by reducing the amount of profit which is liable for Corporation Tax.
However, many companies are failing to claim what they’re entitled to. Sometimes this can be down to a lack of understanding, but often companies are not even aware they could qualify for this type of tax relief.
Therefore, it’s essential to understand who’s eligible and if you are, how a claim can be made.
Eligibility for R&D Tax Credits
To qualify for R&D Tax Credits, it’s important to understand the type of projects which claims can be made against.
- A company must prove they have been innovative in researching and developing a new or improved process, products or services in the fields of Science or Technology. This could include activities in industries such as Manufacturing, Software and Electronics, but aspects of Science and Technology affect almost any sector you can think of.
- There must have been an element of scientific or technological uncertainty i.e. the results weren’t predictable and no expert in the field already has the knowledge or capabilities you’re trying to research or develop.
- The R&D project must relate to the trade you’re currently in or one you plan on trading in once the work has been completed.
- The project can even include a process you’ve implemented internally such as an IT system.
- You must be a company that’s liable for Corporation Tax, even if you’re not profitable.
- There are different schemes depending on the size of company you are.
- Claims MUST be made within two years of the money being spent on the R&D project.
To calculate the claim, only certain aspects will be included. This includes staff wages, labour costs, materials used, software and the cost of premises and utilities.
Can I Make a Claim?
If you think you have any projects which could be eligible for R&D Tax relief, it’s wise to seek professional advice to get the most out of the scheme and make the process as seamless as possible.
At R&D Tax Solutions, we specialise in this particular area of tax reclaim and are therefore the experts in this field. With our in-depth knowledge, we understand every aspect of the claims process in the specialist area. From our Manchester base, we can support, advise and complete the process for you if we feel you have an eligible claim.
To find out what your claim could be worth, use our R&D Tax Calculator so you can see how much you could be missing out on.
We’re a no win, no fee company with a 100% success rate thus far, reassuring you we won’t waste your time if we don’t think you qualify.
To get in touch or to discuss your eligibility for R&D Tax Credits, call us on 0161 298 1010 or email office@rndtax.co.uk.
