R&D Tax Credits

What are they?

R&D tax credits were introduced by the Government in 2000 as a way of encouraging greater research and development spending by companies.  In recent years, the rates have increased significantly, to further incentivise companies to claim and they are available to all companies, regardless of size.

However, research shows that many companies that are eligible to claim for R&D are still unaware that they qualify or believe the process to be difficult.

We work closely with leading experts to make more businesses aware of R&D tax credits and to help banish the myth that some people may have, of them only being for companies with R&D departments or ‘men in white coats’.

In actual fact R&D tax credits can be claimed across a wide variety of different sectors.  Any company that spends money trying to improve a product or service through technology, either by using qualified staff or appropriate project controls etc is likely to be eligible to claim.

Statistics show that around 8,700 SMEs and 1,900 Large Companies are already claiming more than £1.1bn each year in R&D tax relief from HMRC.  But there are thousands more companies still yet to claim – could yours be one of them?

Are you eligible to claim?

To help you identify whether your company could be claiming R&D tax credits, you can use the short series of questions listed here (R&D Questionnaire). If you answer ‘yes’ (or even ‘unsure’) to one or more of these questions, the chances are that you could be eligible to qualify.

How can your company benefit?

From April 2012, SME’s will be able to deduct up to 225% of qualifying expenditure when calculating their profit for tax purposes.  What’s more, you can claim R&D tax relief on expenditure that’s up to three years old.

The precise size of the tax credit will depend on the size of your company, its tax rate and how many of your activities are eligible. Smaller companies, for example, can claim at a higher rate and qualify for extra financial support if they’re loss making.

If you would like to speak to us in more detail about how we can help you claim R&D tax credits, please contact Justin Smith direct on 0113 2044228 or email at justin.smith@kirknewsholme.co.uk.