What are R&D Tax Credits?
R&D Tax Credits are a tax incentive put in place by the UK Government in 2000, with a purpose of encouraging companies to innovate, which the Government believe is advantageous for the UK economy.
R&D Tax Relief Credits for SME’s and large businesses.
SME’s with a qualifying R&D project claim back up to a 230% tax deduction on the amount they’ve spent on qualifying R&D expenditure. Where this results in a tax loss, the loss can be surrendered in return for a cash payment. Large companies can claim a 10% “above the line” tax credit in relation to their R&D expenditure. This can help improve the reported results of the company
Who is eligible for R&D Tax Credits?
A common misconception is that R&D tax relief only applies to science and technology companies. However, there is a whole host of industries who can reap the benefits from R&D Tax Credits, just as long as the project either:
- Seeks to advance their knowledge
- Improves a service or product
- Solves uncertainties in the process
The project does not need to be unique, there just can’t be a readily available solution. Neither does the project need to succeed. Examples of projects were we have successfully assisted our clients include:
- the design of bespoke machinery for two different manufacturers in relation to paper products;
- the development of new bespoke software for a client’s internal accounting and operations systems, where a solution was not readily available in the market place;
- Several claims relating to new products and processes that clients have developed, where they are either completely new, or an improvement on what is available in the market place.
These are just a few examples of the many claims we have undertaken. We would also note that claims can be made where the R&D has been subcontracted out to another party.
R&D Tax relief specialists in Manchester
Our specialist in-house R&D tax relief specialists in Manchester can assist you with your claim, as claiming yourself can be a complicated and prolonged endeavour. Another bonus is that claims can be made for the past two accounting periods. This can often result in a large sum of corporation tax repaid or R&D tax credits.
It’s important to find out if you are eligible to make a claim immediately, as you don’t want to miss any deadlines and potentially lose out on thousands of pounds. Make sure you get in touch with our friendly team at Alexander & Co today.