Research and Development Tax Relief
"...I didn't realise what we do classes as R&D - brilliant!"
Do you develop new products or redevelop / enhance existing products? If you do you may be missing out on significant tax savings worth which would increase your tax relief by up to 100%!!
Many companies are not aware that they can claim enhanced tax relief for R&D expenditure, meaning they are missing out on the government helping to fund their development activities.
Research and development has a much wider definition than many people think; you might be eligible for tax benefits and not even realise it!
We can help you to obtain the benefits of this incentive by;
- Determining whether you are a qualifying company
- Helping you assess whether your activities qualify for this tax relief
- Review your activities to make sure you claim all that you are entitled to
- Work closely with you to prepare and submit your claim to HM Revenue & Customs
What is R&D tax relief?
Research and Development (R&D) tax relief works by enhancing the amount you spend on R&D for tax purposes. For example, if you had qualifying expenditure of £100,000 then you would have £200,000 of expenditure for tax purposes. This reduces your taxable profit and in effect doubles your tax relief to 40% to 55% (for financial periods ending before 31st March 2012) depending upon your profitability.
The enhanced expenditure can even be used to create or enhance tax losses, which can be exchanged for a tax refund or credit.
If your company carries out activities which seek to resolve technological or scientific uncertainties or make technological or scientific advancements you could qualify for this tax relief and contrary to popular belief the relief is not restricted to scientific research or technology companies.
There are potentially more criteria to meet and further details on who is eligible, which can be discussed with us by contacting us using the details at the foot of the page.
What’s the benefit for you?
- Assist with cashflow by either reducing your future tax liabilities or obtaining a repayment where relevant.
- Reduction in the net cost of research and development activities undertaken.
How can we support you?
We combine knowledge of the legislative environment with practical experience in working with companies to support clients through every stage of the application process.
- We can navigate you through the process with as much, or as little, assistance as you desire.
- We can help you interpret qualification criteria - many companies incorrectly rule themselves out by failing to recognise some qualifying activities and costs.
- We are able to speed up claims by putting in place effective long term reporting systems compliant with HMRC requirements and agreeing methodologies with HMRC on your behalf.
Why choose Essex Abel?
Clients use us to help identify qualifying research and development expenditure, in order to increase tax benefits and reduce their tax bills.
Our experience in this field means that we can help you maximise your claim and minimise your tax payments.
We can provide a complete service, minimising the effort required from you and ensure that you comply with all relevant HMRC requirements. Such an approach helps to reduce HMRC scrutiny over claims.
For our existing clients eligible for this relief we also act for their Corporation tax affairs and so this can help translate into time and cost savings when combined with our normal compliance services.
Contact us
If you feel that this is an area which could be relevant to your business then please contact Jason Oram for a free initial, no obligation consultation.
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