Research and Development (R&D) tax credits are a government incentive with the aim of encouraging UK companies to invest in innovation. There is potential for R&D to be found in all industry sectors, so don’t be put off by the scientific-sounding working title of “R&D”, you really don’t need to be carrying out tests in a white lab coat to qualify.
Afford Bond Associate Director, Sarah Glass explains: “If you can determine that your business has spent time and money developing new products, processes or services; or even enhancing existing ones, and there has been an element of uncertainty which you have had to overcome, then it’s very likely that you have some eligible expenditure to make a claim with.
“The current enhancement on qualifying expenditure is 130% which means that the total amount available to be deducted from taxable profits is 230%. If you’ve been undertaking R&D for some time, we can even look back at the previous 2 years for you and if you’re in a loss making position you can still claim and choose to receive a tax refund, which will naturally provide a valuable cash injection benefit to your business.”
At Cheshire Accountants, Afford Bond, we are always looking to add value to the professional services we offer. We regularly discuss R&D opportunities with our clients during our business review periods. For example, over the past 8 years we have identified for one client alone, £2.7m of enhanced expenditure with a total R&D claim of £4.9m. We’ve also saved the same client £572,000 in corporation tax (more on this in a later blog).
If you think that your business may benefit from an R&D review – or you would like to find out more – please contact Sarah Glass at Afford Bond Nantwich, or complete the Contact Us form here on our website at www.affordbond.com
There are very few businesses which cannot take advantage of a Research & Development (R&D) review, so it may be one of the best investments of your time you make this week.