R&D Tax Credits
Delivering maximum value to your business
With tax credits allowing businesses to claim up to 33% of their research and development (R&D) costs, there’s no better way to advance your company in ways that you may have never thought possible.
We have helped a wide range of clients from varying sectors to claim thousands of pounds in tax relief or cash credits for their investment in new technology and developing new innovative products and services.
R&D Tax Credits – Your Questions Answered
What Are R&D Tax Credits?
Research and development (R&D) tax credits are a government incentive designed to motivate companies to invest in innovation. They are a key source of cash for businesses to invest in innovation, which can involve hiring new staff, buying technology and ultimately, taking their company, and industry, to the next level.
How Much Could I Reclaim?
Tax credits let you reclaim up to 33% of your R&D costs, even if your project fails, or goes in another direction.
SME’s, regardless of whether they’re profitable or operating at a loss, can get back up to 33% of their R&D costs. Large companies qualify for the RDEC (Research and Development Expenditure Credit) regime and can receive up to 10% of their costs.
This credit can be offset against your Corporation Tax, or surrendered for a cash credit if loss making, after the end of your financial year.
What Costs Qualify For R&D Tax Credits?
- Staff costs, including salaries, employer’s NIC, pension contributions and reimbursed expenses.
- Subcontractor and freelancer expenses.
- Materials and consumables, including heat, light and power that are used during your R&D processes.
- Software usage and associated costs.
- Clinical trial costs, including payments to participants for taking part.
Is My Business Eligible For R&D Tax Credits?
R&D can occur in every sector, and therefore any business, regardless of size or sector can benefit from R&D tax credits. If your company is developing new processes, products and services or modifying existing ones, then this could count as R&D, and you could be eligible for tax credits because of it.
Your Business Must Also:
- Be a limited company in the UK that is subject to Corporation Tax.
- Have conducted qualifying research and development activities.
- Have already spent money on these projects.
How Do I Claim R&D Tax Credits For My Business?
You will need to:
- Create a compelling technical narrative.
- Collate a clear table for key financial calculations.
- Include the expenditure on your CT600, and file this with HMRC.
Your narrative needs to show how you are:
- Seeking an advance in science and technology.
- Trying to overcome uncertainties.
- How these activities could not be easily worked out by a professional in the field.
Why Use Williamson & Croft To Complete Your R&D Claim?
Although you can undertake your own R&D Claim, it can cause problems if the CT600 is filled out incorrectly and/or the level of supporting documentation is not up to the required standards. This could result in an HMRC enquiry or a processing delay that stalls your R&D claim.
Due to our extensive experience within the field we ensure that our R&D experts deliver maximum value to your business. We achieve this by utilising your existing record-keeping systems to capture all qualifying expenditure and to provide a robust report with enough technical narrative to satisfy HMRC should they launch an enquiry.
Why Choose Williamson & Croft For Your R&D Claim
- We are an award-winning firm of accountants and tax advisors offering the full range of services to clients within the UK and beyond it. This is highlighted by our 5* reviews, and the fact that we come highly recommended by so many of our clients.
- We don’t believe in a ‘one size fits all’ approach. We offer strategic advice based upon market conditions, cash flow and the goals you hope, and will, achieve.
- We have clients from a wide range of sectors who consider us experts when it comes to understanding, and delivering on, their specific needs.
- We are easily found in Manchester and Liverpool and it would be great to arrange a meeting to discuss your business and for you to meet the team who will be assisting you.
Proactive and responsive
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"I cannot speak highly enough of Williamson & Croft. Their customer service, attention to detail, responsiveness and strategic advice is very impressive, they go the extra mile to get the job done."
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