Understanding R&D capital expenditure
Research and development tax credits provide businesses of all sizes with the opportunity to reclaim some of the expenditure that they invest in the development of innovative solutions. Claiming R&D tax credits, however, means claiming for only certain categories of revenue expenses, such as salaries, sub-contracting costs, materials and software. For fixed assets, meanwhile, it’s important to understand how R&D capital allowances (RDAs) can help you reclaim even greater expenditure related to your research work.
Put simply, capital allowances offer a means to claim for the money your business spends on fixed assets related to R&D spending. This expenditure may include, for example, the building or refurbishment of premises, development of IT infrastructure, or even the investment of machinery or fixtures that are necessary for the research activity to be conducted.
Successfully claiming for R&D capital allowances offers the chance to reclaim 100% first year capital allowance for R&D capital expenditure – a figure that has no upper limit. As such, investigating whether you are eligible for such tax benefits could prove essential to your business.
Are you eligible for R&D Capital Allowances?
In order to be eligible for RDAs, you have to be able to demonstrate that you have not only been involved in research and development, but that you have necessarily spent money on capital assets for the work to be conducted. There is a clear distinction been capital assets and revenue expenses, so talking to leading tax specialists such as R&D Tax Solutions will help you identify precisely what expenditure meets the requirements.
Talk to Our Manchester R&D Tax Specialists
Our team of R&D tax specialists in Manchester will be able to offer thorough advice and support through the entire R&D tax process. We will be able to advise on any RDAs for which you are eligible, and identify whether any such claims are worth pursuing. We will be delighted to answer any questions you may have and help calculate the potential returns you may be eligible to receive.
For more details on RDAs and to speak to one of our friendly and knowledgeable advisors, contact R&D Tax Solutions today on 0161 298 1010.
