Could your Business Claim for R&D Tax Credits
For many years, Small and Medium Enterprises (SME) and Large Companies have missed out on claiming the tax benefits they deserve, primarily due to a lack of awareness about the available reliefs.
In April 2000, HMRC introduced a research and development (R&D) tax relief scheme specifically to reward UK businesses making scientific and technological innovations. According to research, however, thousands upon thousands of eligible companies are failing to claim this relief. In the case of large businesses,the complexities of making a claim have often created barriers, whereas SMEs are, more generally,unaware of the potential returns available.
With the government actively supporting the investment in innovations, now is the time for SMEs and large entities to make the most of the tax benefits on offer.
How to identify if you are in the SME or Large R&D regime
All companies are considered under Large R&D Regime, unless:
- They have fewer than 500 employees (across the entire group of companies), and
- Their turnover is less than €100 million or their balance sheet is less than €86 million
Grants, subsidies and state aid can often change the status of an SME to fall within the Large scheme.We recommend for such cases that specialist advice is sought.
Is your business making the most out of R&D tax credits?
If your business has been active in pursuing the credits, relief, and cashback available from HMRC, you can take pride in the fact that you’re among a very exclusive number. If, however, you didn’t even know about the possible advantages to be had, you should assess your eligibility today and talk to a team of R&D tax credits experts.
Under both the SME and Large Company schemes, it is imperative that the R&D work being funded doesn’t solely benefit the commercial endeavours of the business undertaking it. In order to receive relief, there must be a wider aim to develop scientific or technological knowledge that could benefit the entire sector.
The SME scheme for boosting your cashflow
If your company meets the given requirements and has a qualifying project, there is a relief rate of 230% on qualifying costs available. Put simply, for every £100 you spend on R&D, you are able to lower the profits you’re paying corporation tax on by £230. Those companies not making a profit, meanwhile, can even choose to receive R&D tax credits instead of carrying forward a loss.
Don’t miss out on your R&D tax relief for your large enterprise or SME
To ensure your SME or large enterprise is benefitting from the R&D tax relief available, contact the team of experts at R&D Tax Solutions in Manchester today. Our experienced accountants will be able to provide full details on your eligibility, plus help determine the potential for success of any claims you might have. Simply complete an online enquiry form today or call us today on 0161 298 1010.