Research and Development (R & D) Tax Credits

Research and Development Tax Credits - R&D Tax Credits

Research and Development Tax Credits

Research and Development (R & D) tax credits are an UK government incentive, which aim to encourage innovation across a variety of businesses.

Depending on the number of working hours a company devotes to research and development, they can potentially lower their corporation tax payment or obtain a refund from HMRC.

Companies based in the United Kingdom are able to claim tax relief for their inventions if they dedicate time to developing new products/services, enhance existing ones, or expand their field’s general expertise.

R & D Tax Credits

R&D tax credits are available to companies in all types of industries. However, only certain companies that are subject to corporate tax are eligible to claim R&D tax credits.

It is paramount that limited companies who are making a claim are engaged in activities that are believed to entail research and development and that are aimed at improving science and technology.

For an experienced individual within a business, the R&D projects that are being claimed for must contain a certain degree of unpredictability.

This essentially means that if the project produces questions that have individuals within the business unsure on answers, then that is a strong suggestion that the company is carrying out effective research and development activities.

If you feel your company is eligible for R&D tax credits, then consider the following questions:

  • Does your company create and develop new products?
  • Does your company create and test prototypes?
  • Does your company want to develop its processes?
  • Does anyone on your team have a scientific or technical background?

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