The Government is trying to encourage businesses to innovate by giving generous tax relief to those who are carrying out Research & Development (R&D).
However, many eligible businesses are not claiming it because they do not realise that they have eligible projects or think it is too difficult to obtain.
. For SMEs it can double the tax relief on the eligible expenditure, thereby reducing profits by 225% of the amount spent and reducing the company’s tax bill. Loss-making SMEs could even access a cash payment worth 24.5% of the expenditure, which could really help with cash flow.
Businesses often look for grants to help towards R&D costs, but claiming a grant significantly reduces the tax relief you can claim on your innovative activities, so you need to weigh up the amount of grant you will get against the tax you could save before making a decision.
You can make retrospective claims going back two years, but after that the relief is lost, so it is important to take action as soon as possible, so that you do not miss out. This is an area that not all accountants are experienced in. You have the technical knowledge, but we have the experience of submitting successful claims. For more information, contact Senior Tax Manager, Steve Tobin, on 0151 649 3900 or email firstname.lastname@example.org.