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
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.
Phebys Accountants has partnered with industry specialists Jumpstart, who provide R&D tax relief assistance for UK businesses. Jumpstart has a proven track record in making robust, successful R&D tax relief claims for their clients. They know what to claim, how to claim and, perhaps most importantly of all, the many pitfalls to avoid.
Introduced in 2000, R&D tax relief is the Government's way of encouraging exciting new products and services by helping to reduce some of the financial risk for companies.
Around 22,000 small and medium sized enterprises (SMEs) and over 4,000 large companies claimed well over £2.9bn last year in R&D tax relief from HMRC, but many more thousands aren’t.
How can your business benefit?
SMEs can deduct up to 230% of qualifying expenditure when calculating their profit for tax purposes. Therefore, where an SME brings expenditure of £100,000 on qualifying R&D, it can deduct £230,000 when working out its taxable profit, or loss, for corporation tax purposes.
In smaller terms, that’s the equivalent of your company getting between 24.7p and 33.35p, depending on company’s financial situation, from HMRC for every £1 spent on R&D activities. What’s more, you can claim R&D tax relief on expenditure that's up to three years old. The precise value of the tax credit will depend on the size of your company, its tax rate and how many of your activities are eligible.
Antony Beak, Business Development Manager at Jumpstart says: “Companies are becoming increasingly aware that R&D tax relief does not simply apply to blue-sky research, but to the ground-breaking systems, processes and efficiencies for which UK enterprises are justifiably renowned. Businesses should now be thinking as innovatively about their funding mechanisms, with tax relief at the core of their strategy, as they are about innovations in their day-to-day activities.”
If you think you may be eligible, Phebys Accountants can put you in touch with Antony Beak at Jumpstart, for a free no-obligation appraisal of your suitability for the scheme.
Simply call us on 01480 896267, or email email@example.com, and we will be happy to discuss your options with you.