R&D Tax Credits

R&D Tax Credits

R&D tax credits are one of the most untapped tax-saving tricks around and yet as many as 95% of eligible businesses are yet to claim.

R&D tax credits can reduce taxable profit, sometimes even as far as to a tax loss, thus lessening a company’s corporation tax liability. It is also worth noting that the R&D tax credits can be redeemed irrespective of whether or not your business is profitable.

Is my business eligible to claim?

Many companies that believe themselves to be ineligible for R&D tax credits would actually be able to claim. Despite preconceptions about just who is eligible to receive R&D tax relief, any company that spends money on developing new products, processes, services or technologies; or indeed on enhancing pre-existing ones, is able to claim the relevant tax credits.

What R&D costs can I claim on?

R&D expenditure includes staff costs, such as wages, employer NIC and pensions contributions; expenditure on subcontractors and freelancers; the cost of consumables such as heat, light and power which are used for, or transformed by, the research and development process; and the money spent on some software and technology.

If you would like to know if your business is eligible to claim R&D tax credits, or want to make a claim, Phebys is here to help. Simply call us on 01480 896267, or email admin@phebys.co.uk, and we will be happy to discuss your options with you.