The Corona Crisis has hit every aspect of our lives this year. For some businesses it’s been a struggle to survive. Many have needed to come up with new and innovative ways to engage with customers or develop new solutions which appeal in a changed landscape, all while working remotely and still doing the day job.
What if your business could be rewarded for the innovations implemented? Well it’s possible, if certain criteria are met. Research and Development (R&D) tax relief was brought in 15 years ago to support Limited companies that work on innovative projects in science and technology. It can be claimed by organisations that seek to research or develop an advance in their field. It can even be claimed on unsuccessful projects.
However, it seems that many companies are not aware of this important credit. It’s been estimated that as many as 97% of eligible business still fail to claim the R&D tax relief they are entitled to.
If your organisation has been doing any kind of R&D, it’s worth investigating if your project is eligible, as the tax relief on offer is substantial. An additional 130% of qualifying R&D costs can be claimed for tax purposes. In other words, for company qualifying for £100k worth of R&D, there are additional qualifying costs of £130k taking the total to £230K. This is a huge amount!
A key point is that you can claim within two years of the end of any accounting period and as most accounting periods are 12 months, that means you can claim for R&D completed up to three years ago!
More information about R&D tax relief can found on www.gov.uk. The claiming process and criteria is fairly complicated, so if you need help do not hesitate to contact us. d&t is a Swindon based chartered accountancy and business advisory firm with a 100% success rate with R&D claims. Last year, our team completed an R&D claim for a client, which resulted in a corporation tax repayment of £63k. This is just one example of significantly valuable tax break for Limited Companies undertaking R&D work and well worth the effort to see if suitable projects qualify for the criteria set out.
At d&t we help our partners wake up to what’s on offer, always enabling them to keep their businesses moving forward towards a successful future. To innovate and win, do one thing today, look into R&D tax relief or just give d&t a call to find out more! There has never been a better time to invest time and resources into innovative product planning.