Window for R & D Claims Could be About to Close
The two year window for claiming Research and Development (R&D) tax credit is about to close for Companies with upcoming year-ends.
Companies can claim R&D Tax credit for an accounting period ended within the past two years, which means that any company with (say) an October accounting date has until 31 October 2019 to potentially make a claim for qualifying expenditure incurred for the year ended 31 October 2017 and so on.
R&D Tax Reliefs provide companies with the opportunity to claim generous tax savings for their innovative activities. Opportunities for making a claim are often overlooked, with business owners overestimating the level of innovation required to claim. Projects qualifying for R&D relief include those seeking an appreciable improvement in science or technology.
So, if you are paying technical staff to solve technical problems there may be scope to claim if you are:
- Modifying a manufacturing process
- Developing bespoke software
- Creating a new product or improving an existing one
Eligible companies can obtain tax relief on qualifying expenditure either by reducing taxable profits or creating (or increasing) tax losses which can be sacrificed to HMRC in return for a cash repayment.
The relief available is very generous and an SME incurring £100k of qualifying costs could save in the region of £25k in tax. Our specialists focus on quickly and concisely assessing a company’s eligibility to claim Research and Development tax reliefs. We will then ensure that your claim is completed as painlessly as possible, is compliant (we have a 100% success rate) and is maximised.