Making your Business R&D budget go 130% further
The Government is providing extra incentives for small or medium-sized enterprises (SMEs). There are quite a lot of rules around the tax relief that is available but, if a business qualifies, it can be entitled to:
To claim the relief, you need to be an SME and show how your project meets the Government’s definition of R&D
Many people consider R&D to be something mostly ‘techy’ that happens in laboratories – that’s certainly R&D, but it’s only a part of the story. The scope of R&D is enormous. Essentially it can cover any sort of problem solving that moves technology or science forward.
That could include new ways to build tunnels under the road, working out new ways to refurbish components of listed buildings, creating a new tool that drills at an angle, or developing the tools and technology to cut through an unusual depth of concrete. If you’re in the business of problem solving in innovative ways, your project could easily attract R&D relief. Don’t be afraid to ask us!
Any company can claim relief for R&D purposes, but the types of relief vary depending on the size of the company claiming it.
Big companies have an allowance of 11%
SME business can claim up to 33%
We work with both types of R&D relief – the SME tax scheme and the RDEC scheme. For purposes of R&D tax relief HMRC define an SME as having:
A staff head count of under 500
A turnover of under €100m pa
Less than €86m of assets on their balance sheet
A company that does not satisfy the above conditions will be classified as a large company and will definitely only be able to benefit from the RDEC scheme. A small or medium enterprise will be able to benefit from the SME scheme.
The following are examples of costs that can be claimed for projects from the date you start working on it until you develop or discover the advance or the project is stopped:
You are able to claim R&D relief for up to 2 years after the end of the accounting period it relates to.
This is an area where expert advice really helps things go smoothly and experience really counts. R&D relief is a core part of our business, and our team are advising SMEs on a daily basis. Let us look after the tax position whilst you look after the R&D.
Our experienced team can quickly assess whether your business can benefit from the above tax relief schemes. Get in contact today.
