Has your company spent money developing a new product or software? Have you made any advances in science and/or technology? If so you could be eligible for Research & Development (R&D) uplift as high as 130% on your development expenses! Projects don’t have to succeed to claim.
R & D tax credits are tax breaks which work by reducing your profit and accordingly your corporation tax. The scheme is designed to help companies whether they are in profit or not. So if your company only makes a small profit, or none at all, it can still benefit by surrendering for cash some of the tax loss that has been created.
The relief for an SME can be as much as 230% of the eligible expenditure. Serious consideration should therefore be given as to whether your Company is eligible to claim this valuable relief.
How do you know if you qualify?
If the project you have undertaken includes any element of technical uncertainty then it is worth investigating whether a claim can be made. Are there any elements of the project where you were not sure the component could be built to the required specification, or perhaps you were not sure what it would look like once built because it was evolving during the process?
Innovation – Has your project achieved something on a technical front that no other project has achieved or it has but there is no information on how to make the product/service on the public domain? Cost – Have you spent a significant amount on, say, software development? If so, chances are there is an element of technical uncertainty in there.
There is no denying that this is a very complex area and that many businesses will not realise that the projects they are working on will contain an element which could qualify for R & D. Usually, the most expensive part of any project are the labour costs involved, which can be substantial. The tax savings being missed are therefore also substantial. Review your projects and get advice if there is even a small chance you feel it may qualify.
Green & Co specialise in R & D Tax Relief, if you would like to speak to one of our team, contact us on 01633 871122.