Research & Development (R & D) tax credits are often misunderstood and consequently an estimated 97% of eligible companies don’t make a claim. R & D relief from HMRC can produce significant savings for businesses – so exploring a potential claim with an experienced r&d tax specialists is always worthwhile. However, many business owners are unaware of the scope of activity which can qualify and so miss out.
What qualifies for r&d tax credits?
Essentially, resolving uncertainty with new products, services and processes, even if unsuccessful, can be qualifying R&D activity.
Have you done any of the following in the last two years?
- Looked for faster, more efficient or more effective solutions
- Created a new product or made improvements to an existing one
- Explored new processes
- Trialed new materials or code
- Solved problems or overcome issues for customers rather than simply taking an order or brief
R&D tax credit claim
If so, you may be able to claim for R&D tax credits. Even if you have already made a R&D claim it is advisable to have it reviewed by a specialist to ensure the maximum has been claimed, which may result in additional savings for you. Companies involved in substantial, continuous R & D work should also review the profit extraction policy of owners since traditional profit extraction via dividends may be counter-productive.
R & D tax claims should not be dealt with in isolation and must be considered as part of your overall tax strategy, which is why you should deal with an r&d tax relief specialist who has a detailed understanding of tax. If you need help with your R & D tax credits or relief calculations, or any other tax advice, or if you are looking for an accountant in Yorkshire, please contact our Leeds office on 0113 398 1100 or at firstname.lastname@example.org
R & D Factsheet
Our online resources enable you to access the most up-to-date business information online. See our R & D Factsheet for more R&D activities and expenditure information.
Make sure you check our video resources with videos on R&D challenges faced, and how business owners have overcome them.
Want to know more? Call us on 0113 398 1100 or email email@example.com