All on R&D Tax Credits
There are those costs that businesses incur for the development of products, processes, software and services. A business can actually get to claim these costs back in terms of tax deductions or cash repayments. These are the ones known as the R&D tax credits and they are a corporation tax deduction or at times can as well come as cash repayments paid from the HMRC. In order to ensure that you get the most out of the scheme, the R&D tax credits plans, it will be so advisable for you to consider the input of the professionals in tax preparations.
The main driving motive that actually made the idea of the R&D tax credits scheme was for it to be a means to spur and encourage as much of an increase in the expenditure that a government saw into the research and development activities or projects. The R&D tax credits scheme actually happens to be one of the schemes that has been seen as a sure and core incentive that has enabled the government encourage as much investment by companies in research and development projects. This is a scheme that actually allows for up to 33.35% of what a company actually spends on research and development projects be recovered as cash repayments through the HMRC.
It is always the case that a number of the businesses actually fail in the fact that they do not realize that they do qualify for the R&D tax credits and besides this, even for those that do realize this, they always fail in making their full claims as they happen to be entitled to. In actual sense, the R&D tax credits scheme has been in existence for quite a long period of time, spanning over 15 years and quite a significant sum is recovered annually by a number of businesses. This is as well being enjoyed by a number of the SMEs as they as well have recorded high amounts of claims in a year.
In so far as the qualifications for R&D tax credits go, any company and in any industry stands eligible for these tax benefits. The main determining factor looking at qualifications for the R&D tax credits is that a company must be having an undertaking in a project that sees an achievement in the advancement of technology. In the event that your company may as well be involved in a risk project in innovating, improving or developing a process, a product, or a service then this is a kind of business venture that actually qualifies you for R&D tax credits.
As one of the ways and a test to help you determine if at all your undertaking actually qualifies for the R&D tax credits is by looking if at all your team actually faced some technological uncertainties when they started out the project.