R&D Tax Credit Advisers Greater Manchester
Research and development Tax Relief is a rewarding business incentive for businesses in Great Britain.
So what is R&D tax relief?
The Research & Development tax initiative benefits firms that are investing in new developments.
This incentive was initially announced in the year 2000 to reward innovative firms.
For every £1 used up in an eligible undertaking, you can recover up to a third of that pound
To sum up, for every £100k invested in a project, you will get up to £33,000.00 back. You may recover between 25% and 33% of your eligible costs back.
The incentive was launched at the beginning of the new century to encourage more businesses to invest in completely new and better products and services.
For every £1 the treasury provides back to a company, they state they get a further £7 on a multiplier basis.
The thing is, when your organisation gets a successful R&D award, you have to pay peoples wages, and purchase other things which carry duty. Wages will be spent on things that are taxed like petrol, alcoholic beverages, tobacco etc.
This is definitely a case of the Government giving to receive.
How do I claim R&D tax credits?
Well should you have spent company cash endeavouring to enhance its product or service this could uncover a possible award.
You could be eligible to claim if you have attempted to make improvements to existing products and services. You need to have put money into qualifying activities.
HMRC is going after numerous organisations that have submitted inaccurate claims. This shows the importance of using specialists to make sure that things progress without any problems.
What things could qualify for R&D tax credits?
Projects where you are puzzled by the the best way to move forward and when there existed a level of significant technological and / or scientific uncertainty which had to be remedied could signify a claim.
What matters is that your organisation has tried to make improvements to its products and/or services. You certainly will do this by striving to address the uncertainty from the challenges attached to the project.
OK, so how far back is my business able to claim?
HMRC is strict on this point, you can only recover costs spanning the last two open tax years. In simple terms, that's the two years before this one.
How much money is an R&D claim worth to my business?
Certainly there is a lot of potential. Our average client award is now worth over £45,000 for most SME's that can be back inside your business in roughly 6-9 weeks.
Most of the time, the funds come by way of an immediate cash rebate and/or reductions in your ongoing corporation tax liability.
What is the value of a successful Research & Development award for an SME in profit?
An SME company in profit should be expecting reductions in CT liability of 25%. It is easy to see why this scheme is increasing in popularity.
A loss-making SME can trigger a fast injection of cash by surrendering a loss.
A loss-making SME can expect to retrieve approximately 33 % of their allowed project expenditures back.
E.g. £33,000.00 for each £100k of qualifying spend identified.
When you realise that up to one hundred percent of employees salaries can be recovered you understand how rapidly the numbers stack-up in your favour.
R&D Business Costs You Can Claim Back
Why use Hamilton Wood & Company?
Well, firstly our senior R&D specialist resides on HMRC's consultation committee for R&D so you couldn't be in any safer hands.
We are a multi-award winning company whose sole purpose is to help strengthen yours.
We are proud of our many happy client testimonials born out of the fact that we put you, our customers first.
Multi-Award Winning Business Services
Stimulating UK Businesses
Why let our team of experts help you?
Average R&D client award is over £45,000.00 and this can be back in your business in just 6-9 weeks.
Our fast-track process limits your time involved to less than three hours. This means that any valuable benefit identified can be back in your business fast whilst you can get on with running your business.