Does your industry qualify for R&D Tax Credits
The government’s R&D tax credit initiative was introduced to incentivise and reward businesses engaged in innovating new solutions. Companies investing in the development of new products, processes or services – or even those looking at changing existing products – can take advantage of either a corporation tax reduction or a cash return.
One of the biggest benefits of the scheme is the fact that an array of industries are able to claim for the tax relief, even those that are loss-making. And, while it may be thought that only those involved in scientific and technology companies will meet the criteria, the reality is that businesses of all types have the opportunity to take advantage of the scheme.
R&D tax credits criteria
Assuming that certain key criteria are met – specifically that the research and development activity is attempting to ‘resolve scientific or technological uncertainties’ – qualifying activity can be claimed for. Regardless of company size or sector, the opportunity to claim will be available, with schemes existing for SMEs and larger organisations.
To claim as an SME, businesses should:
- Employ less than 500 employees
- Have annual turnover no greater than €100 million or a balance sheet total of under £86 million
- Be a limited company in the UK
- Have been trading for more than one year
Larger organisations, meanwhile, will be able to claim under the Research and Development Expenditure Credit (RDEC) scheme. By meeting the necessary criteria, it is possible for companies to claim R&D tax relief of up to 230% of qualifying costs. Such expenses include applicable staff salaries, some sub-contracting costs, materials and consumables.
Who can claim?
As identified above, almost any business in any sector can claim for R&D tax credits. As long as the work conducted fulfils the relevant requirements and seeks to find solutions that can potentially benefit the whole sector, there is the possibility to reclaim on qualifying expenditure.
At R&D Tax Solutions, we’ve worked with a number of business across a spectrum of industries to help them successfully claim for their R&D tax credits. For example, we’ve helped those in the following market sectors:
What’s more, we can even help subcontractors and loss-making companies to make successful claims for appropriate tax relief.
Contact R&D Tax Solutions today
Speaking to the team of specialists at R&D Tax Solutions today will enable you to determine whether your business matches the necessary criteria and whether any credits can be claimed for the projects you have conducted. Contact us today on 0161 298 1010 for more details.