What are R&D Tax Credits?
R&D (Research and Development) Tax credits are a HMRC tax incentive designed to encourage companies to invest in research and development. Companies can reduce their tax bill or claim cash credits as a proportion of their expenditure towards R&D.
Even if your business is in its infancy is quite small, complex or simple, single or multi-site you could be eligible. As part of our discussions with you we can advise on the process of patenting your innovations and we’ve developed a flexible R&D tax credit claim process to help minimise stress and maximise benefit to you and your business.
Key considerations for R&D Tax Credits:
The government definition of R&D is deliberately broad so it can be applied across all sectors.
R&D can happen anywhere, not just in labs. It is just as likely to be happening in a manufacturing environment by a start-up or SME or a software business or on a farm
R&D can include anything from overcoming a design challenge using technology, developing a manufacturing process, or even experimenting with a new flavour or recipe or growing technique.
It is sometimes hard to identify R&D when you are ingrained in the day-to-day running of your business, or it is so common you no longer consider it to be R&D
How can I identify R&D in my business?
There is no definitive guide to qualifying activities. Perhaps the easiest way is to ask yourself some questions about your business to tease out what innovation you have tackled, such as;
- Have we advanced our business in a scientific or technological way?
- Have we improved our processes? Workflows? Production lines? Product range? Product quality?
- Any tricky problems solved?
- Was there uncertainty in what we were trying to do?
- Have we had any failures? Write-offs?
- From trying new things / ideas out?
- Any experiments / trial and error testing?
- Have we done anything different this year?
- New Capex or new technical hires?
If you think you might answer ‘Yes’ to any of these areas then it’s a good sign that there might be R&D Tax Credits to reclaim and you should speak to a specialist. SMART Business Hub can help direct you to ensure you get the maximum benefit for your work, with a success-only fee structure, so there are no upfront costs and you only pay when you receive the benefit.
If you pay Corporation Tax, either in profit or loss and think you may qualify, please click below to start your reclaim journey: https://easyrnd.co.uk/r-and-d-tax-credits/