Many Businesses are missing out on Research & Development Tax Relief. Are you?
Recent studies suggest that, roughly, only 5% of Research and Development (R&D) tax reliefs are being claimed by eligible small businesses.
What is Research & Development tax relief?
In 2000 the government introduced Research & Development tax relief to allow small businesses to be innovative. It was established to help with the costs of starting a business and/or creating a new product.
Who Can Claim It?
Small companies can have a tax relief of 130% if they make a profit.
Loss making companies can claim repayable tax credits calculated at 14.5%
To qualify for R&D tax relief, your business needs to prove the following:
- Your R&D project sought an advance in science and technology
- Your R&D project had to overcome uncertainty
- Your R&D project attempted to overcome this uncertainty – Even failed R&D projects are eligible for tax relief
- Your R&D project could not have been easily replicated by a professional in your industry
Qualifying expenditure for R&D projects includes:
- Staffing costs
- Consumable or transformable items
- Contracted costs (65%)
- External workers (65%)
The R&D tax relief is a specialist area of tax planning and advice, we utilise the services of a specialist advisor to ensure the claim is processed appropriately.
Should you have any queries about your eligibility for R&D Tax Relief, please do not hesitate to contact us.