Research and Development Tax credits (also known as R&D) are a form of UK tax relief. They reward your business for investing in innovation. Your business may be eligible for Research and Development Tax Credits if it spends time and money making advancements in your field. That could include developing new products, services and processes, improving or enhancing existing ones.
Typically, it applies to technology and science and it must relate to your company’s trade. You could already have a business engaged in the area in question. Or you may intend to start a new one following successful research and development stages.
R&D Tax Credits can even be claimed for projects which you have worked on but not completed and taken to market.
Thousands of Pounds of Research and Development Tax Credits Going Unclaimed
HMRC publish an annual statement on the take-up of R&D Tax Credits. It shows that thousands of pounds are going unclaimed, and the scheme is under subscribed. That’s even allowing for the fact that in the 2015/16 year the number of claims was up 22%. 21,865claims were actually filed.
R&D Tax Credits – Worth a Look
As you would expect, you must make sure that your innovation project fulfils the criteria laid out by HMRC.
They expect you to be able to demonstrate the innovation, and that it couldn’t have been worked out by a professional in the field.
But if you have been working on a project which creates something that’s unique, new and clever, R&D Tax Credits are certainly worth a look. A wide range of industries can claim, including those as diverse as slipper manufacturers and building contractors.
Get in touch to talk about R&D Tax Credits
If you’d like to find out whether your business could make a successful claim, just get in touch with us here at Jones Harris for a no-obligation chat.
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