Research and development (R&D) tax credits are a valuable government tax relief that rewards UK companies for investing in innovation. The research and development tax relief legislation, enables small and medium sized businesses to claim 230% deduction for eligible expenditure against company profits, or a tax repayment from HM Revenue and Customs.
Paul Edwards, a Director and Chartered Tax Advisor at our Afford Bond Nantwich office reported that a recent survey revealed more than half of small businesses are unaware of the tax relief. It has also been estimated that up to 57% of small businesses are eligible to claim research and development (R&D) tax relief.
The tax relief means that for every £100 of eligible R&D costs, £230 is deducted from company profits or added to trading losses for tax purposes.
For example, a restaurant creating a new recipe, a brewery experimenting with a new pint or a business trying to streamline its IT with cloud technology could all be eligible for research and development (R&D) tax relief. It’s important to remember that research and development tax relief doesn’t only apply to scientists in white coats.
Cheshire Accountants Afford Bond have been assisting clients to make successful claims for a number of years in a wide range of sectors. Some of the sectors where we have made successful claims include recycling, agriculture, manufacturing and property.
With offices in Nantwich, Wilmslow and Chester, Afford Bond Chartered Accountants ensure that clients claim all appropriate reliefs available and pay the correct amount of tax.
If you would to like to discuss the tax relief in more detail, please contact Paul Edwards, a Director and Chartered Tax Advisor, based in our Afford Bond Nantwich Office.