R&D Tax Claims
Get up to speed with R&D tax claims to find out if you can claim valuable tax credits for the innovative work you are doing to build your competitive advantage.
Research & Development Tax Credit for SMEs
Research & Development can be costly. But for many businesses it is essential more creating and establishing a competitive advantage in their industry. If your business is investing in research and development, you could be eligible for R&D tax credits.
What are R&D Tax Credits and how do they work?
The UK government is committed to supporting businesses in the UK to who drive innovation in their industries. To support these businesses, the government introduced the R&D tax credits scheme.
This scheme enables business to claim up to 33.35% of a company’s R&D spend as either a reduction in Corporation Tax or a cash repayment. This claimed amount is tax-free and businesses are free to use it how they want.
Qualifying Criteria for R&D Tax Credits?
Currently, any company in any industry is eligible to claim R&D tax credits. The only qualifying criteria is that the company must have “undertaken qualifying research and development activities” according to the UK government.
The official definition from the UK government is:
“R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The activities that directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are R&D.”
UK Government
What projects qualify for R&D tax credits?
Only projects that are aimed at creating an advance in science or technology (excluding social sciences) will qualify for R&D tax credits. Added to this, projects must be directly related to your trade, either and exist trade or one that is a result of the R&D work.
It will be necessary to explain how the R&D work has:
- Investigated a specific advance in science and technology
- Overcome uncertainty
- Could not be easily worked out by a professional in the field
How to Claim R&D Tax Credits
The simple answer - just contact us and we will guide you through the process. You don’t want to waste a lot of your valuable time trying to work out what to do.
We make the process easy for you:
Step 1
Discuss your situation and understand if a claim is possible
Step 2
Advise you on what is needed to meet the qualifying criteria for a claim
Step 3
Guide you in the preparation of your technical justification document in line with HMRC guidelines
Step 4
Review and analyse qualifying expenses to be included in your claim
Step 5
Include the claim and support documents on the company corporation tax return.
There is no need to be uncertain about what to do with your R&D tax claim, we help and guide you every step of the way.