HMRC and the R&D Tax Credit Schemes
Businesses can at times get to incur some 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. The R&D tax credits scheme actually happens to be one of the schemes that has been seen as a sure and core incentive that has enabled the government encourage as much investment by companies in research and development projects. It actually allows for up to 33.35% of a company’s expenditure on R&D projects to be recovered as cash repayments.
In most cases, a number of businesses do not quite realize that they do qualify for the R&D tax credits and at the same time even for those that do know this, oftentimes fail to lay claim for their full entitlement to the scheme. By far and large, the R&D tax credits have actually been in operation for quite some time, with it having been for more than 15 years and as a matter of fact, the claims that are being seen paid on an annual basis is as well on such a high. 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.
Looking at the qualifications a company needs to meet for them to qualify for the R&D tax credit schemes, basically it can be said that any company and irrespective of the industry will stand qualified for the R&D tax credits. The key to determining whether or not a company will be qualified for making claims for the R&D tax credits is that they must actually be engaged in an activity that will see them result with an end that achieves an advancement in technology. In the event that your company may as well be involved in a risk project in innovating, improving or developing a process, a product, or a service then this is a kind of business venture that actually qualifies you for 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.