What is the Research and Development tax credit scheme ?
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Research and development ( R & D ) tax credits is one of the government ’ s top incentives designed to reward UK companies for investing in innovation and to increase spending on R & D activities . When companies take a risk and spend money on developing new or enhancing existing products & services or creating the most efficient processes , they can make an R & D tax claim and receive either a cash payment and / or a corporation tax reduction .
WHO IS ELIGIBLE ? R & D can occur in any sector : whether it is the food industry , engineering , healthcare or digital development to name just a few . To be eligible for R & D tax credits , the company must be a limited company in the UK and have spent money undertaking qualifying research and development activities .
WHAT QUALIFIES ? The key to eligible activity is attempting to resolve scientific or technological uncertainties , which requires iterative development , prototyping , proofs of concept , experimentation or testing .
WHAT CAN YOU CLAIM ? Claimable R & D expenses relate to the in-house or subcontracted trial and error undertaken to resolve the scientific or technological uncertainties you face . These differ in nature from the commercial project and the entire development project which might include routine work and other elements not related to R & D .
WHAT IF I AM ALREADY CLAIMING ? Although many companies are well aware of and are already benefiting from the generous R & D tax relief / credit scheme , only a small minority of companies are actually claiming the correct amount .
Knowing what you can and can ’ t claim for is a crucial part of the process . The rules for R & D tax claims are complex and nuanced in places , and it is only through experience and a thorough understanding of the different qualifying costs and activities that allows us to prepare robust claims with confidence .
WHY CALL TIM ( A REGIONAL DIRECTOR OF RANDDTAX )?
RandDTax are respected by HMRC for upholding the highest standards in our industry . We offer a Free Audit for companies that have claimed before , to ensure they are maximising their claim and not exposing themselves to compliance risk through the reports they are submitting or the records they are keeping .
If you believe you have a claim or have any queries on a previous claim , we are happy to talk through any concerns you might have and give you peace of mind on 01903 256 777 .
For readers of ACE , we are offering a 20 % discount from our usual rates . To access this special rate , please send enquiries to info20 @ randdtax . co . uk
More information and testimonials can be found on our website www . randdtax . co . uk