Research & Development
Research and Development for businesses can be attributed to many activities. Significantly it is usually part of what a business does day to day. To put it simply if your business has a new or existing product, idea or system that you are developing or adapting then the time and costs incurred could qualify for the R&D Tax Credit.
What could this allowance be worth?
The credit gives an additional uplift of 125% of all relevant costs to offset against your companies tax position. It can be surrendered for cash, even for a loss making business. The average refund is well in excess of £50,000 and does not affect the profit and loss position of your business.
How is this allowance used?
The Tax Credit is made available either as a tax deduction based on R&D costs or it may be surrendered for a cash tax credit. Claims may be made to adjust and recover R&D costs for up to two immediate past accountancy periods; from this your accountant makes adjustments to your tax returns for the company and will be helped with our specialists professional guidance.
Surely my accountant is already claiming this for me?
Accountants will be rightly claiming as many reliefs as they can with their understanding in each area of HMRC allowances. However to gain the maximum R&D relief, it is best to use specialists who understand business processes and qualifying R&D activities. These specialists are best suited to write the qualifying activity report and clearly analyse the qualifying activities, both in time and costs using an agreed formula with the HMRC's R&D departments.