R&D tax credits are part of a government incentive scheme which seeks to fuel economic growth by rewarding innovation and transforming UK business.
How could R&D tax credits benefit my business?
If eligible for R&D tax credits, your business could receive either a cash payment or a reduction in your corporation tax bill. This supports cash flow and enables you to reinvest into your business to transform and grow.
Are you eligible for R&D tax credits?
The scheme is available to your business if all of the following apply:
- You are a UK Limited company.
- You are subject to Corporation tax.
- Your company has carried out work, or a project that qualifies as R&D.
- Your company has spent money on the project.
What sort of projects qualify?
Is your company:
- Creating a new product
- Developing a new process
- Creating or developing a new service?
If so, you may be able to claim the tax credit and remember, the R&D project doesn’t have to have a successful outcome to qualify.
What costs are included in my R&D tax credit claim?
Depending on your particular project you may be able to claim for:
- Labour costs – including salaries, tax, NICs, reimbursable expenses, subcontractors or freelancers
- Materials and consumable
- Some types of software
How can Wessex help?
We have in depth knowledge of our clients’ businesses and their financial information. As a result we can advise on potential R&D claim opportunities as they arise during the year, rather than waiting until your end.
We help to speed up the claims process in two ways. Firstly we collaborate closely with you and our R&D specialist. Secondly, by using Xero effectively, we can access the accurate financial information required for claims.
We work alongside local R&D specialists who we can put you in touch with. We have helped many clients either secure or increase the grant available. Often where the client thought there was little chance of a claim.
For further help and information please contact the team at Wessex, or book your Review.
