Companies that spend money on research and development (R&D) projects can claim an enhanced tax deduction amounting to 230% of the qualifying costs.
This can be a huge boost for a struggling business as it can wipe out taxable profits meaning that no corporation tax is payable and it may even create a loss for tax purposes. That loss is useful as it can be surrendered for a payable tax credit to set against other tax liabilities such as PAYE. You need to claim your payable tax credit and we can help you with that.
The section of HMRC which processes R&D claims has been very busy lately, so follow these tips to avoid your claim being further delayed by unnecessary questions:
• clearly and concisely describe the technological advances which your R&D project is attempting to achieve;
• carefully analyse all relevant costs relating to that project – we can check which costs will qualify – and exclude those which do not, and
• include your company’s banking details.
The R&D claim is normally submitted as part of your corporation tax return but if that has already been filed we can submit the claim using an online form.
