Research and Development Tax Credits
Too many people
85% of SMEs don't think they qualify for R and D tax credits and are therefore missing out by not claiming.
119 million successful claims have been put through so far.
DON'T be one of those that could have but didn't.,
Background
In 2000 the government introduced a scheme to encourage scientific and technological innovation within the United Kingdom.
R&D is a Corporation Tax (CT) tax relief that may reduce your company’s tax bill if your company is liable for CT or, in some circumstances, you may receive a payable tax credit.
What is R and D relief?
R&D relief allows companies that carry out qualifying R&D related to their trade to claim an extra CT deduction for certain qualifying expenditure. The level of relief available depends upon which scheme the company uses.
The SME scheme From 1 April 2015, the relief a company can get has increased to 230% on their qualifying R&D costs. Loss-making companies can in certain circumstances surrender their losses in return for a payable tax credit.
Research and Development Expenditure Credit (RDEC) scheme From 1 April 2015 a taxable credit is available at 11% of qualifying R&D expenditure. For loss making companies the tax credit is fully payable (subject to certain restrictions).
Features of the RDEC scheme Companies with no CT liability will benefit from RDEC either through a cash payment or a reduction of tax or other duties due. The payable credit is limited to the company’s PAYE/NIC liabilities of the staff engaged in qualifying activities in the accounting period. SMEs will be able to claim RDEC if they do subcontracted or subsidised research. Companies in groups can surrender the RDEC against another group company’s CT liability
Our preferred supplier is:
John Challen of Catax
0203 393 2204
07876 555166
https://catax.com/research-development/what-is-research-and-development-tax-credit/
