"If we knew what it was we were doing, it would not be called research, would it?" Albert Einstein
Einstein definitely made a good point. However, if you want to claim enhanced tax relief against your company's R&D activities, you'll need to make a strong case for your research to HMRC. You'll need to demonstrate that your business innovates, improves or develops a product, service or process that is designed to advance knowledge by resolving general scientific or technological uncertainty.
Is my business eligible for tax relief?
· There's no minimum expenditure to qualify for R&D tax relief
· There's no need for your company to have its own dedicated R&D department or to operate in any particular business sector.
- Qualifying small to medium-sized enterprises (SMEs) can claim tax relief at the enhanced rate of 230% on R&D spending. This includes the cost of staff, materials, utilities and computer software - equivalent to a tax saving of 45% of your R&D spending.
- SME’s that don't pay corporation tax can instead claim a payable tax credit equivalent to 32.625% of the relevant expenditure.
- The project must be related to your company’s trade or a trade your company intends to start up subject to the results of the R&D.
How do I make a claim?
As experts in handling R&D tax relief claims, we can help you make sure your claim meets HMRC's specifications, which include an explanation of:
- the scientific or technological advance sought
- the scientific or technical uncertainties involved in the project
- how you overcame these uncertainties
- why the knowledge sought was not readily deducible and therefore required R&D.
Get in touch
For a free initial consultation, contact Jonathan Parsons: email@example.com