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 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:
If you want to discover how we can help your business, Quest Birmingham Accountants offers the following services: Tax Services, Self-Assessment, VAT, Payroll, New Business, R&D Tax Credits, Annual and Management Accounts, Tax Returns, Self-Employed Accounts, Business Planning, Business Tax, Accounts Services, Bookkeeping, Pensions, and UK Tax Deadlines.
Call us on 0121 235 0315 for a chat or send us a message below to book a free tax review of your business.