Are you a company that is forward thinking, that looks at ways to improve efficiencies in your methods, processes, functions? Is your company involved in designing, making, constructing, manufacturing or otherwise creating new or improved products or systems?
If so, chances are you are entitled to claim R&D tax credits. Furthermore if you are a small- or medium-sized enterprise then you meet the criteria to claim the most generous of the R&D Tax Credit relief schemes the government has to offer. Under the SME scheme, on average you could claim £26 of every £100 you spend; if you are loss making, as many innovating start-ups are, then a claim could result in a cash payment of up to £33 of every £100 spent.
This valuable tax relief scheme was first introduced 16 years ago to encourage innovation in the UK, and it has been tweaked over the years to make it easier for businesses to claim. So you would think that after all this time every business that is eligible for these would now be claiming them? That is not the case at all!
Many great businesses are missing out on this valuable relief, which can mean a significant cash subsidy from the Government.
Why are so few companies claiming?
The main reason is that businesses and their advisors do not realise that some or all of their activities and expenditure qualify.
This is not helped by the common misconception that the relief is only available to certain industries, such as pharmaceuticals or engineering, which is not the case – all innovating industries can benefit.
While it is improving, the design, publicising and administration of the scheme has attributed to it going under the radar for many businesses.
Think you might qualify?
Should you wish to know more about these tax credits, or wish to discuss whether or not you may be missing out please contact RIFT R&D Tax Credits
on 01233 653002 or email [email protected]