Posted by James Pearson on 10 May 2011
R&D Tax Credits FAQ’s
How much can I claim?
Am I an SME?
Do I qualify for R&D tax credits?
What Qualifies for R&D tax credits?
How long does an R&D tax credit claim take?
Can you work with our existing advisors?
What will we have to do?
Can I do this myself?
How much can I claim? Back to top
From April 2011 a company with eligible R&D expenditure will be able to claim 200% of costs incurred. This means that a company can receive £2 of tax credit for every £1 actually spent.
Am I an SME? Back to top
According to HMRC, an SME is a company that has less than 500 employees. It must also have a turnover of less than 100M euros and/or a blance sheet of less than 86M euros.
Do I qualify for R&D tax credits? Back to top
Most companies wrongly think that they are not eligible for R&D tax credits, believing their activities to simply fall under day to day operations. However, the eligible criteria covers so many areas and if you are operating within a manufacturing, engineering or software/technology based field it is very likely that you will have qualifying activities for the Research and Development tax relief.
You can find out if your company meets the basic requirements by visiting the ‘Do I qualify?’ page.
What Qualifies for R&D tax credits? Back to top
Almost any eligible research and development expenditure can be claimed for. These costs could include staffing, outsourcing, materials and even improvements to old methods and machinery.
Most companies don’t realise how much they could actually be claiming for and thats why it is important to consult an expert when considering a claim.
How long does an R&D tax credit claim take? Back to top
There is not definitive answer to this question, as the time taken is entirely dependent on the size and scope of the claim. However, we help our clients every step of the way to ensure that the claim process is as smooth as possible whislt ensuring that all eligible activities and expenditure are claimed for.
Can you work with our existing advisors? Back to top
We can absolutly work with your current advisers and if you would prefer that we speak with them directly then we are only too happy to do so.
What will we have to do? Back to top
Depending on the size and the scope of the claim, the amount of time needed to prepare the claim can vary, but we have long established practices that mimise and automate the process, meaning that you company could be benefiting from R&D tax credits in a very short amount of time.
Can I do this myself? Back to top
Whilst there is nothing to stop you preparing and submitting the claim yourself, without the guidance of experienced advisers it is highly likely you will miss a large amount of eligible expenditure and thus miss out on thR&D tax credits you are entitled too.
- Property Partnership Incorporation and SDLT
- Non-Resident Landlords – UK Tax Update
- Non-Resident CGT – April 2019 Changes
- Tax Relief For Residential Mortgages
- Top 10 Expat Tax Tips for Individuals Moving to the UK