Research & development (R&D) tax relief can help fund your company, by reducing your tax bill or providing you with cash.

Over 4,500 small and medium-sized (SME) companies are claiming more than £250m each year in R&D tax relief from HM Revenue & Customs (HMRC).The tax definition of R&D is very broad and any company that employs scientists, engineers, or software developers should be considering if they are eligible for this benefit.

Common Misconceptions:

• R&D tax relief is only for bleeding-edge lab work
  
  • INCORRECT: Most companies' R&D is actually development work in a real-world environment

• R&D tax relief only applies to the 2-3 key problem-solvers in the company
  • INCORRECT: The  tax definition of R&D is broad enough that potentially anyone who contributes to getting the product working in the real-world environment has the potential to be included in your claim

• R&D tax relief is just not worthwhile
  • INCORRECT: If you are a loss-making company with up to 500 employees, you could be receiving a cheque from HMRC for a quarter of your annual salary bill. If you are profitable then you can make a 175% tax deduction on these costs to offset against future profits. If you are a larger company and in profit then you can make a 130% deduction of these R&D costs against future profits.

xLDen>iw GoogleDicC

, , , , , , , , , ,