This additional special double tax relief could reduce your company’s corporation tax liability .
This could also result to cashback, allowing your business to use these funds for other areas of investment.
What qualifies for research and development tax relief?
Qualifying costs include the following:
- Staff costs for time spent on R&D (directly or indirectly)
- Power, water and software used for R&D
- Some payments to sub-contractors
- 100% allowances are available on capital items acquired specifically for R&D.
SME research and development relief allows companies to claim up to 230% of their qualifying expenditure from yearly profits. This includes the normal 100% deduction, plus an additional 130% tax break. If a company makes a loss, then it can claim a repayment of up to 14.5% of any losses surrendered.
Research and development tax credit claims must be made within two years of the costs being incurred. The timing is dependent on the financial year end of your company.
Our in-house accountants and tax advisors have successfully made dozens of research and development tax relief claims for our clients.
We’re happy to help with your claim and provide a fully managed service to ensure this happens smoothly.
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