R&D Tax Relief isn't just for Scientists...
How much of your R&D costs did you claim back last year?
Research and Development (R&D) Relief rewards UK companies for investing in innovative projects to enhance the advancement of technology.
This government incentive enables SME’s to deduct an extra 130% of qualifying costs from annual profits, in addition to the normal 100% deduction. That’s a staggering 230%.
To qualify for R&D Relief, HMRC looks for 4 key aspects: 1. What is the scientific or technological advancement? 2. What were the scientific or technological uncertainness involved in the project? 3. How and when were the uncertainties overcome? 4. Why was the knowledge being sought not readily deducible by a competent professional?So… who can qualify?
Well, it’s not just rocket scientists and F1 teams, in fact, more companies than you think are eligible but most don’t because they are unaware they can. Each time your organisation starts a project and needs to find solutions to challenges that aren’t currently available, you could qualify for R&D tax credits.
What can be claimed back?
Most of the expenses your company incurs whilst trying to solve these challenges can be added to your R&D claim. These include: • Staff wages • Employers NIC • Employers Pension Contribution • Subcontractors • Consumables & Materials • Utilities used (Heat, Lighting, Power & Water) • Software Over the years Redstone has helped prepare and submit over £750,000 of successful R&D claims. The R&D relief has empowered our customers to re-invest into their businesses to drive growth and sustainability along with starting new R&D projects to start the cycle again.