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All on R&D Tax Credits

Read on in this guide and learn as much on the innovation, research and development grants. See more on this page on the HMRC R&D Tax credits.

By and large, the R&D tax credits are largely a corporation tax relief programs that help a long way in reducing your business’ tax bill. If at all you are a small or medium size business, you will have the alternative of going for the tax credits which are often given in the form of cash sums paid by the HMRC. There are some basic qualifications that one needs to qualify for R&D tax relief. One of these would be such as the fact that the firm you run should be one that is liable for the payment of corporation tax. Second is the fact that the R&D project must be one that qualifies for relief.

So what qualifies as R&D for tax purposes? In order for your project to qualify for the tax credits under the schedule, your projects must satisfy the rather detailed HMRC qualification criteria. Generally speaking, a project would be considered to qualify for the R&D tax credits if at all they happen to be advancing science and technology. The project needs to be such that relates to your company’s intended or existing trade. And looking at the SME claims for these tax credits, the small and medium size businesses that intend to claim them should be such that actually will or must own intellectual property that arises out of the project.

By far and large, all companies that meet such basic criteria can make a claim for the R&D tax credits from the HMRC, both the small and medium businesses and as well the larger corporations. This is all provided that the company is liable to corporation tax.

In as much as the qualification for the credits may sound so simple, the reality is that there are lots of strict rules that will count for what qualifies as expenditure from a taxation perspective. Looking at this fact, it is therefore never advisable to assume that all items of your expenditure would be qualified for the tax purposes and considerations. It would as such be advisable for you to ensure that you liaise with an HMRC and R&D tax expert or read the R&D tax relief rules so as to get the guidance on how to make a successful application for these tax credits.

In a nutshell, R&D tax credits can get pretty complex making it so advisable for you to contact the experts and specialists in HMRC R&D Tax credits for the necessary help for your way out.

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