Over the past year, we have saved our Clients over 4.4m through Research and Development tax credits!
The majority of businesses who could be using the scheme to claim one of the most lucrative tax reliefs currently available, simply aren’t. This is mainly due to the confusion and lack of understanding of how to claim.
From catering to construction, small and large businesses alike can apply for and receive a credit if their relative project is eligible.
About the scheme
The HMRC Research and Development Tax Credit scheme, one of the most lucrative tax relief systems available to small businesses, is in place to encourage innovation here in the UK, is not just for technology-driven enterprises. Relief is open to any business investing in innovation regardless of industry.
The scheme has been developed to encourage innovation in Britain, ensuring those spending their own funds on the innovation are encouraged to do so with little tax burden.
The tax credit works out at roughly 33% for loss-making businesses and while you might not want to be a loss-making business, the theory is that you should be making this claim as you go in order to assist with ongoing costs.
What about historic claims?
Although historic claims can be made there is a two-year window from the end of the accounting period the work is carried out in.
Who should be claiming?
R&D Tax Relief can be claimed by any limited company working to develop new products, processes or services; or enhancing existing ones, which are eligible for R&D tax relief. This could mean, for example, developing software or hardware but, it could also mean working on a new service that could influence the behaviour of an industry; innovation comes in many forms.