R&D tax reliefs are among the most under claimed tax incentives currently available, meaning thousands of eligible companies are losing out on significant tax benefits.
R&D does not have to involve ‘blue sky’ innovation, nor does it have to consist of creating new technologies. Instead, appreciable improvements to existing technology which would be regarded as such by those considered experts in their field (company employees for example) are qualifying activities.
HMRC allow an extra 125% – 130% of qualifying costs to be deductible against taxable profits. This equates to at least a 25p cash saving for every £1 of qualifying expenditure identified.
Also, loss making companies are not excluded, as losses can be surrendered to HMRC for a cash payment and retrospective claims can be made for the past 2 accounting periods.
Click here for more details or contact Lesley Sutton on 01484 550 037.