Who Can Claim R&D Tax Relief?

Start your tax relief claim now – Call 01606 369000

Research and Development is in every sector of business, from Financial Services to Solar power and everything in between. So if your business pays corporation tax and is spending time, resource and money on innovation and development then you could be eligible to make a claim. A quick chat with one of our friendly R&D Specialists will quickly identify if you are.

Under current tax law, only Limited companies can claim this tax relief for innovation and development costs.  Due to this there are many partnerships and sole traders that are missing out on this valuable tax relief that usually results in cash refunds from HM Revenue and Customs.

When making claims, several types of R&D work undertaken by companies qualify for R&D tax relief but are commonly missed. These include:

The time and costs incurred by a company to develop a new product with new functions and capabilities before selling to the market usually qualifies.
Even if the development of the new product fails, the time and costs incurred will still qualify for the R&D tax relief.

Companies may be asked by other companies to undertake or assist in the overall R&D project. For example, design software programs for analysis and monitoring. Although, these companies are being paid for the R&D work, they can claim cash back from HMRC at 12% of their costs (e.g labour and materials).

Start-up companies may apply and receive a grant or subsidy to assist with the costs of R&D. In this case, the company can use the grant or subsidy to pay for the costs of development and then claim cash back from HMRC of 12% on the same costs.

Tim Lwin, and R&D Specialist says “we have worked with newly acquired clients where previous claims have missed some of the qualifying costs and we have reopened these claims, ensuring that the correct tax credit is received and that all subsequent claims include all qualifying costs.”

In the above cases, it is important to establish that the R&D project meets the qualifying criteria for the R&D tax relief, and that’s where our expertise comes in, we work with clients from all sectors on a daily basis, liaising with HMRC and ensuring that they get the best possible outcome when making a claim – a tax refund!

Contact us now to find out more on 01606 369000.