What are R&D Tax Credits?
R&D is a government supported scheme introduced in 2000 and gives qualifying companies payable tax credits and/or corporation tax reductions for qualifying Research and Development activity.
The scheme availability is very broad and applies to almost every industry sector. It isn’t just for those creating new products or new ideas, it often relates to the development of processes or services within your business, or just improving existing products, processes or services.
Cash Benefits
R&D tax relief can offer significant cash benefits; up to 33% of eligible expenditure can be recovered, even if the company is loss making.
Staff Costs
Expenditure such as staff costs, materials consumed and subcontracted activity can be included in an R&D tax relief claim.
Underutilised
Because of common misconceptions the regime is underutilised. What companies often regard as ‘just everyday challenges’ can often qualify.
“R&D tax relief can amount to thousands of pounds every year, making a huge difference to a business.”
— David Collins, Director at Access R&D Tax
The Truth About R&D Tax Credits
The R&D regime is much broader that what people think. No matter the size of your business, if you spend time creating or improving things such as products, processes, materials, components or services it’s likely you’ll be able to claim R&D tax credits. This also includes attempts to make a process more efficient.
You may be concerned that if you make a claim it’ll open up a can of worms, but rest assured, this is a highly transparent government supported initiative. R&D is there to help business of all sizes grow, which in turn helps the economy, and you won’t need to pay additional tax on successful claims.
If you don’t feel comfortable with corporate style accountants then you’ll find our open and friendly style a breath of fresh air. We’re committed to building lasting relationships with our clients built on trust and with over 15 years experience of being a Chartered Tax Adviser, we understand your R&D concerns and will only proceed when we know you qualify to make a claim. Your business will be safe in my hands.
By claiming up to 33% of your eligible costs back from HMRC you have the opportunity to re-invest and grow your business so you can be the leader in the marketplace.