Tax relief for research and development is the government’s way to incentivise businesses to invest in innovation.
What do Research and Development Tax Credits involve?
A tax saving can be made on all qualifying expenditure, that is deemed to be research and/or development in nature.
The tax credit would include staff PAYE, subcontractors and all materials consumed in the process.
In addition, companies that have made a loss from the process could be eligible for a cash payment alternative if losses are submitted to HMRC.
Unsure if you qualify?
If you’re unsure as to whether your business operates a level of research and development, ask yourself these questions:
- Do you encourage advancement in the field of science or technology?
- Do you seek to test or improve innovation of new materials, process or code?
- Are there tests on your solutions after they are designed?
- Do you work with new processes or new ways of thinking?
- Do you encourage your team to find better, faster, more efficient, or more effective solutions?
- Are you attempting to achieve or resolve something of uncertainty?
If this is your business, then you are likely to qualify for Research and Development Tax Credits.