There are those costs that businesses incur for the development of products, processes, software and services. A business can actually get to claim these costs back in terms of tax deductions or cash repayments. They are the ones known as the R&D tax credits which are basically a corporation tax deduction and at times may be received as cash repayments from the HMRC. In order to ensure that you get the most out of the scheme, the R&D tax credits plans, it will be so advisable for you to consider the input of the professionals in tax preparations.
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. This scheme of R&D tax credits is actually one that has been billed in a number of quarters as being one of the key incentives that encourages investment in research and development. It actually allows for up to 33.35% of a company's expenditure on R&D projects to be recovered as cash repayments.
It is always the case that a number of the businesses actually fail in the fact that they do not realize that they do qualifying activities for the R&D tax credits and besides this, even for those that do realize this, they always fail in making their full claims as they happen to be entitled to. 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. This is as well being enjoyed by a number of the SMEs as they as well have recorded high amounts of claims in a year.
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. If at all your company happens to be taking some kind of risk by innovating, improving or developing a process, a product or a service of some kind, then this is a sure sign that you can rely on to tell if at all you qualify for the 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 R&D 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. Do I qualify for R&D tax relief?