Research and Development Tax Services
RD Tax Incentives Are a Tax Scheme From the English Government Structured to Convince Organisations to Invest in R and D
They should help reduce a company’s tax bill if you're in profit, or you could claim tax rebates that are a proportion of the R&D costs incurred providing your company has made a loss.
We’re here to help make the steps to recover your money uncomplicated, giving you a complete end-to-end research and development tax services solution.
Relating to R&D Tax Allowances
If your company performs RD then you certainly may meet the criteria for R&D tax reliefs, and this will be able to shrink your government tax bill and supercharge taxable losses.
If your enterprise creates a loss on qualifying R and D outlay, you can choose to surrender the losses that come from an HMRC claim.
The HMRC should then refund the actual surrendered losses as a monetary R and D tax rebate currently at 14.5% for SME's.
There are several tax programmes customized to different enterprise types that help to maximise your return.
The Small to medium enterprise R & D tax incentive program is for organisations of no more than 5 hundred full-time employees that comply with one of the next few conditions: they have a cash flow lower than €100m and also balance sheet assets beneath €86 Million.
Under this scheme, the rate of R & D tax allowances could, in fact, be up to twenty-four point seven percent and then loss-making small to medium enterprises have the option to surrender some of their losses for a payable monetary credit coming from HMRC directly.
The Large Company Scheme is for organisations in excess of Five-hundred FTE staff, or with profits in excess of €100m and additionally balance sheet assets in excess of €86,000,000.00.
Hamilton Wood & Company are here to make sure that the process of identifying and recovering your money is as simple and straight-forward as possible.
Benefits of RD Tax Relief
The SME programme has an accelerated rate of R & D relief of up to 230%, and the Large Company Incentive has a rate of 130%.
From the figures above, you can quickly see that this will help reduce a huge figure of money from your next company tax bill.
Research and Development Tax Services | What Qualifies for a Claim?
A whole host of other organisations will be eligible for the U.K. Government's R and D tax relief’s programme. It is true that the vast majority of businesses who are eligible simply haven't claimed, and there are a number of reasons for that but mainly it's due to widespread uncertainty regarding exactly what is claimable and what isn't.
Again the UK government use this form of tax relief to stimulate the economy and compensate businesses involved in any ongoing development activities that will enhance the countries position as a world leader.
It is important that with any company projects that you intend to claim for, that you have the capacity to demonstrate to HMRC that the service or product you are referring to in your claim is really ground-breaking and, at a technological level, an enhancement on what’s presently available internationally.
According to HMRC, R & D for tax reasons is really any endeavour (or a component of a wider project), which is trying to bring about a progression in science or modern technology by overcoming scientific or technological doubt”. R & D is always considered to have happened no matter if the work is successful or not; it is the “searching for the advance” that underpins any successful claim.
To Sum up, in HMRC’s View, You’re Carrying Out Research and Development When You Are:-
- Overcoming any technological concerns
- Seeking an enhancement in technology/science
- Causing a competent industry professional to not immediately recognise the best way forward
If points listed above apply to your business project, congratulations! You will able to claim RD tax incentives on the projects day-to-day expenses and qualified expenditure, including items like personnel, subcontractors, materials, computer programs and power bills.
Costs That Are Eligible for Research & Development Tax Deductions
For businesses within the small to medium program, Research and Development tax claim enhancement (the enhanced reduction) has increased to 230% of the overall identified pot of qualified expenses.
The actual benefit is then paid out based on your company’s current circumstance so contact us today for clarification on exactly what your business could be owed.
Currently, if a business is in profit then for every hundred thousand pounds of qualifying expenditure, you can expect to receive a massive £26,000.00 reduction from your next tax bill.
Now let's say for example that your company is incurring a loss...
Well, then the incentive is even more powerful. Instead of a tax reduction, you will receive a whopping £33,350.00 CASH REBATE for every £100k of qualified spend in as little as six to eight weeks.
Preparing a Research and Development Tax Credit Claim
HMRC’s guidance on claiming RD tax relief, which runs to hundreds of pages of content, puts most businesses off doing it themselves. It's simply too complex for a layman.
Then there is the ever-present threat of getting it wrong and either under-claiming what you’re allowed to or over-claiming and causing an HMRC review.
It's far better work with an expert - an individual who preps claims all day every day, who keeps abreast of the most recent adjustments in regulation and who has a sturdy and proactive relationship with those responsible for approving your claim.
As one of the UK’s foremost R & D tax credit experts, Hamilton Wood & Company has a proven history of greater than 3,000 very successful claims.
We recognise exactly what you can claim, the very best way to claim and then the countless stumbling blocks to steer clear of that could delay or derail your claim.
It's important to mention that if we take on your claim and you're unsuccessful in claiming Research & Development tax relief, you will not owe us any fees. We work on a success only basis.
There are actually various reasons to pick Hamilton Wood & Company as your businesses RD Tax Relief partner
So Just Why Do so Many Businesses Select Hamilton Wood & Company to Support Them in Their Claim?
Considering that we deal with the most experienced industry professionals and we have got perhaps one of the slickest approaches available will mean that we are able to significantly reduce the demands on your time by carrying out almost all the work for you.
Contact Hamilton Wood & Company right away on Manchester (0161) 791 1401 and one of our industry experts will be delighted to help with your claim.