HMRC have stated that they believe many more businesses could be claiming research and development tax relief. In the last year the tax authorities have issued guidance which confirms that relief may be available in wider circumstances than previously understood and also removed some previous restrictions to making claims.
Now is the time to review your company’s activities over the last two years.
Qualifying expenditure for an SME will either:
- Attract 125% uplift when calculating your taxable profit and cash tax payable. So relief is given at 225%, or
- Attract a cash payment to your company of up to 25% of the qualifying spend, whether or not you have paid any corporation tax.
Expenditure may be eligible for relief where your company is working on something unique and searching for resolutions to technical problems. Companies in many industries are now benefiting from this relief including those operating in manufacturing, energy, construction, media and logistics. Relief may be available for innovation in products, processes and services and even payments to subcontractors can qualify.
Want to know more? Burgis & Bullock have considerable experience in working with companies to help them assess the likelihood of a successful claim, prepare and submit that claim and obtain HMRC agreement. We can also help companies develop a process for capturing data and making successful claims. Call us today on 0845 177 5500 or contact us online for more details.