HMRC and the R&D Tax Credit Schemes
A business can incur costs for the development of processes, software and services. A business can actually get to claim these costs back in terms of tax deductions or cash repayments. These are the R&D tax credits, a corporation tax deduction or at times can come as cash payments from the HMRC. To ensure that you get the maximum of these benefits and R&D tax credits, it will be advisable for you to consider getting the services of the professionals in tax preparation.
The main driving motive that actually made the idea of the R&D tax credits scheme was for it to be a means to spur and encourage as much of an increase in the expenditure that a government saw into the research and development activities or projects. 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 often the case that a number of businesses do not quite realize that they actually qualify for R&D tax credits and even for those that realize this, they many a time fail to claim their full entitlement. This scheme, the R&D tax credits scheme and plan has actually been in business for quite some time, spanning more than 15 years since its establishment and quite a sum has been recorded in the claims that are paid on an annual basis. The SME category of businesses is as well not excluded from these benefits as they have as well recorded such high claims in their ranks for the R&D tax credits. Know about R&D tax credit eligibility here!
In terms of the companies that do qualify for the R&D tax credits, by and large any company and in any industry will actually stand qualified for making claims for the R&D tax credits. 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. Should it be that your company happens to be taking a risk of some kind by innovating, improving or developing a process, product or service, then this actually can be a strong indicator that it can qualify for R&D tax credits.
As one of the ways and a test to help you determine if at all your undertaking actually qualifies for the sme r&d relief tax credits is by looking if at all your team actually faced some technological uncertainties when they started out the project.