The Jonathan Ford & Co Advent Calendar – Day 12
Over the course of the festive season we’ll be bringing you an advent calendar’s worth of tax and financial tips. Some of them might even be a little Christmassy! Day 12 brings a hefty chunk of tax relief for innovators in the form of…
R&D tax credits
Did you know that companies pushing the boundaries of scientific and technological knowledge can claim some really generous tax reliefs?
If you’ve overcome, or are attempting to overcome, a generally accepted scientific or technological uncertainty then you’re likely to qualify for the relief. Think along the lines of, “Am I doing something unconventional or different to everybody else?” The sort of activities that can qualify are wide-ranging and includes taking existing products, systems or processes and making them more efficient or commercially viable.
The benefit to you will range from 19p to 33p for each £1 of qualifying expenditure you incur in carrying out research and development. In some cases, you may even qualify to receive a cash tax credit from HMRC. Qualifying expenditure includes salaries, subcontracted R&D, utilities, materials, software licences, and testing and trialling costs.
So far we’ve helped our clients benefit from R&D relief to the tune of over £1.5 million in areas as diverse as telematic boxes to tidal prediction technology to cloud platforms and big data.
We’ve prepared some R&D frequently asked questions, so if you would like some further reading they can be found here. Or alternatively, get in touch!
