R&D Tax Credits are a great way to make the most of your innovations. They’re designed to reward businesses with the kind of ideas that can boost the while economy.
You don’t even need to have a dedicated R&D facility to benefit. Tax credits can be claimed for a much wider range of activities than many businesses realise.
Here’s what it takes to qualify for SME R&D tax relief:
- Fewer than 500 employees.
- Under 100m Euro turnover.
- Eligible to pay UK Corporation Tax.
- Using considerable expertise to solve real-world problems.
- Investing in staff, software, consumable items, prototypes or materials.
R&D Tax Credits reward projects that drive forward what we know and what we can do. It could be a product, software application or even just a better process. Whatever you’re doing to tackle an unsolved technical problem could qualify for tax relief.
R&D Tax Credits can be claimed for qualifying costs, from staffing and consumables to prototypes and utilities. In return, you can expect to claim back up to £26,000 for every £100,000 spent on research and development.
Of 1.6 million eligible UK SMEs, only 15,995 actually claimed R&D tax credits last year. These claims averaged an impressive £49,000. To qualify, you must be eligible for UK Corporation Tax. That said, you can still claim if your R&D wasn’t successful, or even completed!
Any tax savings or payments are free for you to spend however you want. R&D Tax Credits are designed to encourage businesses to innovate. They’ve even attracted inward investment from outside the UK.
RIFT R&D has made claims for technology companies in software, aerospace, defence and the automotive industry. Even more traditional manufacturing, construction and engineering companies are starting to see their innovations rewarded through RIFT.