Research & Development (R&D) Tax Credits are a progressive type of tax relief available to any UK company that is contributing to the UK economy through innovation and research; be it through improving existing or developing new products, processes, services, devices and materials. Or, advancing the state of knowledge in their sector.
When can a business claim R&D Tax Credits?
Investment in R&D activity can be thought of as “projects”. Two primary criteria must be satisfied for a project to qualify as R&D for tax purposes; this is a definition set out by the Department for Business, Energy and Industrial Strategy
1. Projects must aim to advance overall knowledge or capability in a field of science or technology.
2. In pursuit of an advance it is necessary to have encountered technological uncertainty that required resolution as part of the project.
Who is eligible for R&D Tax Credits?
Any UK company that is innovating or involved in research and development of new and existing products can get access to R&D Tax Credits.
They apply to successful and failed projects and are particularly relevant to development of:
• Software and automation
• Innovative recipes and formulations
• New and improved materials
• Improved processes and methods
• New and improved products
• Environmentally friendly products and processes
While a lot of R&D Tax Credits come from the IT, healthcare and manufacturing sectors – they can be found across all sectors.
Eligible businesses must meet the following criteria:
The inflation rate rose to 10.1% in the 12 months to July, the highest level…
Smaller businesses across England received £21.3bn through the Covid-19 local authority business support grants scheme,…
The number of company insolvencies in England and Wales jumped by a third compared to…
The government has announced plans to delay the introduction of penalties for late submission of…
Three out of five companies expect to increase their prices in the next three months…
Businesses believe that they will need skills in finance, trade, and taxation to help them…