R&D

Posted by admin - August 3, 2016 1:25 pm Research and development

Drive to encourage innovation

As part of a Government drive to encourage innovation, UK based companies may be eligible for very generous tax relief if they are involved in Research and Development (R&D). The scheme has been running for a number of years, but reliefs are now as high as they have ever been.

Many more businesses could benefit

These generous tax reliefs are available to many companies who may not realise that they would qualify. Just over 16,000 small businesses made claims last year, but there are likely to be far more business who have a right to make a claim, they just don’t realise they are eligible.

Are you eligible?

Established small businesses that are investing in innovative technology can qualify for a 130% enhancement of their actual costs, which can be offset against their corporation tax bill.

Start-up companies can also benefit

For start-up companies, it is possible in some cases to receive a cash payment from HM Revenue & Customs, even where no Corporation Tax has been paid. This cash repayment can be vital to further fund a project which may reduce the need to consider external borrowing.

In order to make a claim, we would need a thorough understanding of the work our clients are conducting, which will enable us to compile a detailed report that can be submitted to HMRC along with the tax reclaim.

Would your business qualify?

  • Do you have a limited company based in the UK?
  • Have you been trading for at least a year?
  • Do you employ less than 500 people?
  • Is your turnover less than £85million?
  • Do you incur costs on R&D activities that include any of the following:
  • Staff costs, including salaries and employers National Insurance;
  • Engage with subcontractors who are used directly to carry out R&D;
  • Incur consumable costs or software licensing that are used directly to carry out R&D;
  • Light & heat or water costs used directly to help carry out R&D.
  • Are you working on something new and different?
  • Would your competitors try and steal your work if they could?

If you found yourself answering yes to all of the above, then please contact your local MFW office to discuss a possible claim. We have offices conveniently located across Kent in Ashford, Cranbrook, Dover, Herne Bay, Maidstone and Sittingbourne.