The R&D Tax Credits incentive is one of the Government’s top incentives to encourage investment in research and development activities.
It was designed to encourage innovation and allows up to 33.35% of a business’ R&D spend to be recovered as a cash repayment.
What qualifies for R&D tax relief?
You don’t have to be a lab technician or a scientist to take advantage of the relief. In fact, many businesses wrongly assume they aren’t eligible or don’t claim their full entitlement, resulting in nearly £2billion per annum not being claimed.
Any business operating in any sector may be eligible. If your business is innovating, developing or improving a product or service – you may qualify for R&D tax credits.
The key is that your project must contain some technical uncertainty, so a good test is to think about whether your team thought the technological goal was achievable or not at the start of the project.
A successful R&D claim can bring about a number of benefits to your business. Whether you are using the relief to pay-off tax bills, to relieve cash flow pressures or to fund the launch of another product – the scheme can help your business to grow and develop.
HMRC often state that R&D tax reliefs are under-claimed. Both HMRC and the Government want to see more claims being made, and our specialist tax team are perfectly placed to help. At Smith Cooper, we can help identify whether you are eligible and support you through the entire process. Get in touch with our team today to learn more.