A business can incur costs for the development of processes, software and services. A business can actually get to claim these costs back in terms of tax deductions or cash repayments. These are the ones known as the R&D tax credits and they are a corporation tax deduction or at times can as well come as cash repayments paid from the HMRC. To ensure that you get the maximum of these benefits and R&D tax credits, it will be advisable for you to consider getting the services of the professionals in tax preparation.
By far and large, the R&D tax credits are basically designed and purposed for the sake to encourage innovation and as well increase spending in the research and development activities. It has actually proved to be one of the government’s top tokens that spurs and encourages investment in research and development. This is a scheme that actually allows for up to 33.35% of what a company actually spends on research and development projects be recovered as cash repayments through the HMRC.
It is often the case that a number of businesses do not quite realize that they actually qualify for R&D tax credits and even for those that realize this, they many a time fail to claim their full entitlement. In actual sense, the R&D tax credits scheme has been in existence for quite a long period of time, spanning over 15 years and quite a significant sum is recovered annually by a number of businesses. The SME category of businesses is as well not excluded from these benefits as they have as well recorded such high claims in their ranks for the R&D tax credits. Go to HMRC agent briefing today!
In so far as the qualifications for R&D tax credits go, any company and in any industry stands eligible for these tax benefits. All that will count for their preliminary qualifications is the fact of them having an undertaking in development activities that seek to end in an achievement in advancement in technology. In the event that your company may as well be involved in a risk project in innovating, improving or developing a process, a product, or a service then this is a kind of business venture that actually qualifies you for R&D tax credits.
One of the easiest and simple ways to help you indeed determine if at all your project actually qualifies for the SME relief tax credits, take a close look and see if at all there were any sorts of technological uncertainties that the project team assigned the task faced at the start of the project.