Tax Credits – HMRC Tax Relief
It seems to be a closely guarded secret…a dark art almost, but you CAN claim tax credits for R&D from HM Revenue.
If you’re an innovation or product development company in the UK you could be missing out, as tax relief in this area continues to remain hugely under claimed.
I know this not because I am a master of this dark art, but simply because we had the foresight to involve an R&D tax specialist who became our guiding light in the muddy, complex confusion that is the ‘R&D Tax Rule Book’.
The cynic in me says this complexity is no accident and by making it complicated, businesses simply won’t get it or just run out steam, thinking it more hassle than it’s worth.
I say perseverance is key. Well, this coupled with some expert advice. Trust me, it works… as proven by the HMRC cheque which arrived in our post. A rare sighting indeed.
A recent straw poll carried out over 4c Design’s client base (many of whom are undertaking genuine research and development activities) demonstrated that most didn’t know what they were entitled to. In fact, the majority of them didn’t even know this massive tax incentive existed in the first place. The biggest misunderstanding seems to be the assumption that ‘R&D’ always has to involve white lab coats, test tubes and bits of dead frog. Not so! Most design and engineering projects (where technical risk is involved) are just as eligible for the scheme.
The Government have made no secret of the fact they think innovation is the key to the end of the recession, so much so they are planning to incentivise companies who commit. Indeed in the 2011 Budget, the Chancellor increased R&D tax credits to 200% in this tax year and 225% in 2014.
So what are we waiting for?
If you want to know more or make sure you’re claiming the correct amount in order to fund your projects, drop me a line and I’ll share ‘the knowledge’.