Research and Development (R&D) Tax Credits is a UK government initiative designed to encourage and reward businesses for investing in innovation.
Many businesses aren’t aware of these credits and are unsure as to what qualifies research and development.
Businesses that invest in developing new products, processes or services (or improving existing ones) may be eligible for a tax reduction. No matter your industry sector, business size or service, you can apply and potentially recoup the funds you need to grow your business or build that new product you’ve been working on!
R&D tax credit rates allow you to recover up to 33p for every ￡1 spent, so it’s worth looking into.
R&D tax credits can reduce your corporation tax bill or if you are not making a profit, you can claim a cash repayment from HMRC.
For your business, they might be a suitable alternative to an innovation funding grant, or they could even complement a grant as well.
It might sound complicated, time-consuming or not worth it, but at Telfords Accountants we’ll make it simple. We strive to save our clients precious time and money, and this is one of the ways we can do just that.
We can help you assess whether a project qualifies for a credit. If you’ve undertaken a project that helped develop your business in a technical and innovative way it’s possible that you’re eligible for some tax relief.