R&D tax credits: Are you eligible?
What are they?
Thousands of companies every year use the UK’s research and development (R&D) tax credits to help them develop and improve technology that reduces costs, raises quality or leads to new or improved products or services.
What do they do?
The R&D tax credit works by allowing companies to deduct up to 175% of qualifying expenditure on R&D activities when calculating their profit for tax purposes. Small and medium-size companies can, in certain circumstances, surrender this tax relief to claim payable tax credits in cash from HMRC.
Can I get them?
There are some detailed rules about how this works, for example only certain types of costs qualify, and there’s a minimum spend of £10,000 a year. Most importantly, to qualify for relief, work should be seeking to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.
A variety of companies have made successful claims, including: a systems company delivering advanced surveillance systems and products for demanding environments; a manufacturer and distributor of kitchen knives and gadgets; a company in the construction sector involved in modern methods of construction; and a healthcare company developing cell therapy products.
How can Myers Clark help?
We have experience in helping an increasing number of clients make claims for R&D tax credits. We can assess whether a particular project qualifies for this relief and then calculate your claim. Our fees are calculated on the basis of your tax saving so there are no upfront costs.
If you have incurred R&D costs and would like us to assess whether the project would qualify for the enhanced relief, please email Ian Meaburn or Rebecca Potton at Myers Clark or telephone us on 01923 224411.
Further information
For more information visit the HMRC website to view their guide to R&D tax credits.