Research and Development (R&D) tax credits were introduced for small and medium sized enterprises (SMEs) in 2000 and for large companies in 2002. R&D credits are a generous Corporation Tax relief which were introduced to encourage innovation and enterprise within the UK economy. Some 15,000 businesses across the spectrum claim over £1.4 billion in credits each year. The use of R&D tax relief can create a potentially valuable source of funding for businesses across a wide range of sectors including manufacturing, construction and technology.
We at Tax4Today can help you ensure that you claim tax relief on all eligible expenditure. We have found that many of our clients are surprised how easy it is to qualify for R&D tax credits. In fact, HMRC recently published a consultation specifically targeted at ensuring that small businesses are aware of the opportunities available to them.
The rules as to what qualifies in this regard are complex. In general, a project qualifies as R&D if:
- It seeks to achieve an advance in science or technology
- The research is relevant to the business
- The business is of a trading nature as distinct from someone working in a profession or vocation
We can help you ascertain whether your expenditure on scientific or technological work is eligible for the relief.
We would be happy to have a meeting with you and carry out an initial review as to your eligibility for tax relief. We would recommend discussing these issues with us at the earliest possible opportunity so that we can ensure maximum tax recovery.