The Government’s Industrial Strategy for the future includes making the UK the world’s most innovative economy. In order to achieve this there is a clear need to raise the total amount of research and development investment over the next ten years.
One way that the Government supports this activity is via the use of R&D tax relief. So, if you are involved in this type of work make sure that you are accessing this source of additional funding.
R&D tax relief enables Small & Medium Sized Enterprises (SME’s) to claim additional corporation tax relief for their R&D expenditure.
To give an idea, if you spend £10,000 on R&D your corporation tax bill will decrease by £4,370, £1,900 as usual and an additional £2,470 by making an R&D claim.
If an SME company is loss making it has the option to surrender the R&D loss in exchange for cash back but this is given at a lower rate of 14.5%.
Following the above example, surrendering the loss generated by £10,000 R&D spend would generate a tax refund of £3,335.
For more information, contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.