With UK tax initiatives for Research and Development (R&D) available, companies have the opportunity to soar. Start taking advantage of the tax incentive by exploring innovative ways to improve your products and services. And you don’t need a lab coat to benefit from this tax relief…
R&D Tax Relief is designed to encourage businesses to invest in innovative products and services to boost the economy. Companies that qualify could be granted a 230% tax relief and even a tax refund.
If you’re a small business, you might think ‘Is it worth it?’ or ‘I’ve never had to pay corporation tax and yet to make a profit’, but the answer is yes! This relief can be taken as a cash payment and/or Corporation Tax reduction.
Not all accountants are R&D Tax Specialists and even if they are familiar with the scheme, it’s difficult to identify an innovative project simply by reviewing a business’s accounts. That’s why you’re always best talking to an accountant that has R&D Tax experts in-house (like we do) or partners with an R&D Tax Consultant.
The words ‘research’ and ‘development’ can scare a lot of business owners off, with many thinking they don’t qualify for the incentive. But R&D doesn’t have to be as complicated as some would think.
Here are some examples: