Research and Development Relief is a Corporation Tax relief that may reduce your company or organisation’s tax bill. On the assumption that the company qualifies as an SME with fewer than 500 employees and an annual turnover not exceeding £100m or with a balance sheet total not exceeding £86m, the company may be entitled to claim tax relief of 230% on allowable R & D expenditure after 1st April 2015.
To be able to claim the relief, the company must be undertaking projects that seek to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.
As a general guideline, R & D tax credits can be claimed on the cost of employing staff who are directly or actively engaged in carrying out the research and development, the cost of the materials that are used in the research and development and on payments made to subcontractors that are assisting with the research and development.
Should you feel the above may be applicable to your organisation, we can provide a detailed list of questions that would help establish whether the company has an R & D project for tax purposes.
We have already assisted clients on obtaining large refunds/credits for R & D tax.
If you would like to discuss any question with us, please contact us on 01708 444214 or click here. We will be delighted to hear from you and enthusiastic about exploring how we can help.