If your business operates in R&D, you could save thousands of pounds each year.
What are R&D tax credits?
R&D tax credits are a government tax incentive designed to encourage productive innovation in UK businesses by rewarding limited companies that are actively making a difference to improve their product performance, manufacturing processes and streamlining their services to be more efficient and reduce their carbon footprint.
Is my business eligible?
If your business is liable to Corporation Tax and undertakes R&D, you could claim back on your expenditures. Examples of R&D activity include:
- Improving product performance and manufacturing processes by using new methods and materials
- Experimenting with new renewable energy technology
- Reducing or replacing existing packaging with new and efficient solutions
If your business operates in any of this activity, you could claim back.
If you are a grant-funded business, you could still be eligible for R&D tax credits depending on the nature of your grant.
Many companies are surprised to find that they are eligible for R&D tax credits, and an enquiry is all it takes – you have nothing to lose, but you could have a lot to gain!
What can I claim?
How much you can claim in R&D tax credits depends on how much money you have invested in R&D activity. Examples of redeemable activity includes staff, subcontractors, materials, and consumables (such as heat, light and power).
SMEs can claim back a third on qualifying R&D expenditure and large companies can claim almost 10p for every pound spent.
The average R&D tax credit value to SMEs according to HMRC is over £50,000, so it always pays to check.
When do I need to claim?
You have two years from the end of your accounting period to submit an R&D tax credit claim for expenditure incurred within that period.
But it is never too early to begin your claim. Regardless of when your year end is, it is always best to prepare early and look into your R&D tax credits.
How do I make a claim?
Here is the best part – we can do all the hard work for you.
By enlisting our assistance, we will optimise the value of your claim by gathering information from the relevant people in your business, preparing all the paperwork and liaising with HMRC on your behalf, ensuring that your claim is robustly backed up on the rare occasion it is challenged.
Our team works alongside ForrestBrown, the UK’s leading consultants in R&D tax credits, so you can rest assured your claim is in safe, knowledgeable hands.
Claiming back on your R&D tax credits could make a huge difference to your business. To find out more and for assistance with your next claim, contact our friendly team today for accounting tomorrow.