Many businesses aren't aware they may be entitled to receive corporation tax relief for expenditure incurred on research and development.
HMRC introduced the scheme in 2000 to encourage businesses of all sizes to develop new products and services to help boost the economy and competitiveness of the UK.
As long as a company undertakes a research and development project to advance overall technological or scientific knowledge, there is a possibility that corporation tax relief is available.
An example of this could be the research of a new product that is not currently in operation or developing new software that can be used industry wide and not just to increase company knowledge or capability.
From 1 April 2015 small and medium companies receive an uplift of 130% of expenditure incurred that qualifies as research and development, so for every £100 spent an additional £130 is allowable for corporation tax relief.
In addition to corporation tax relief, businesses may also be able to claim tax credits if they are not liable to corporation tax. From 1 April 2014 the rate of tax credit is 14.5% of the amount of qualifying research and development expenditure or surrenderable loss.
If you believe your business invests in new products and ideas that may qualify for research and development relief, then contact us for a free consultation to discuss the possible tax refunds that may be due to you.
We specialise in dealing with all aspects of the procedure including submission of the claims and dealing with any HMRC queries that may arise during the process. We also operate on a no win no fee basis, so you only pay for results obtained.