On Monday, the Irish News published an article stating the importance of businesses across Northern Ireland and the rest of the UK are claiming their R&D Tax Incentives. The average claim in the UK for Research and Development Tax Credits is currently £46,000 and it is reported that a huge majority of businesses that qualify for R&D Tax Incentives, still aren’t claiming their entitlement.
“The enhanced relief was established to encourage innovation in the UK however many innovative companies are still not claiming it” the Irish News reports. “The relief can help fund the technological advances needed to keep a company competitive, by reducing its tax bill or providing the company with cash, if the company is loss making. It can be claimed by a range of companies that seek to research or develop an advance in their field.”
Despite common misconceptions that “R&D tax relief is associated with work carried out by scientists in laboratories and that the innovation required needs to be ground breaking or revolutionary in order for a company to qualify”, plenty of very every day activities genuinely qualify for R&D Tax Credits but are often overlooked because of a modest outlook on what actually qualifies as innovation.
The guidelines surrounding R&D Tax Incentives are intentionally broadened to the point of covering many areas of innovative activity, in order to encourage all companies, big and small, to work towards bringing new ideas forward – encouraged by the incentive of R&D Tax Credits.
Qualifying is really as straight forward as using science or technology to create new or improve existing products, processes and services. With the majority of companies working on these types of projects feeling they’re not working on anything unique enough to even find out if they’re eligible.
In one short phone call, an R&D Tax Expert can talk through your recent activity, going back as far as two financial years, in order to identify projects that are eligible. Even if you’re not sure where to start, we have specialists from almost every industry and masses of previous case studies that give us the knowledge to look in all the right places, therefore maximising your claim.
Imagine going from having the initiative in the back of your mind, that you didn’t feel was relevant to your business, to finding out you’re on the way to thousands of pounds in tax credits being put into your bank account!
What’s more, R&D Tax Credits are even claimable if your company is working to a loss and on shelved or unsuccessful projects. HMRC are working hard to continuously boost our economy and encourage businesses to continue to attempt to innovate and fund future projects.