What are R&D
Tax Credits?
how much you could receive
R&D Tax Credits
R&D Tax Credits Explained
The Research and Development, R&D Tax Credits was introduced in 2000 as a government incentive as a way to reward UK Limited Companies. The benefit was to provide reductions or rebates of Corporation Tax for eligible Research and Development (R&D) activities. This benefits both profit and loss-making companies that are working on R&D projects. The rate varies depending on a few key factors, but the calculator can give you a rough idea of the benefit you are owed for the tax you have already paid. You should have your documents submitted by a qualified agent registered with HMRC after checking them.
Some people are taking advantage of this and inflating their claim hoping that they will and sometimes do get passed… but there is a risk that this will get flagged now or in the future and then you will be subjected to a compliance check which is normally due to something being missed. If there are red flags then HMRC may file an inquiry which would be a more intrusive dig into the companies finances. This could have a much larger effect on your business and the businesses you partner with.
Whilst this benefit is active there is no reason why you shouldn’t claim back the tax you are paying. If you qualify for any of the large number of R&D incentives, it is a simple process to get more money back into the business. It is worth seeing if you qualify and also seeing how much benefit your business could claim.
Look below at some of the sectors this applies to and get an understanding of how for a few hours of your time you could earn thousands back from HMRC. The average R&D tax credit claim currently is approximately £55k. Our quick calculator can give you a rough idea if you are aware of your spending on R&D for the year in question. Get in touch with us today so you do not miss out on potentially thousands of pounds that can be re-invested into your business!
What are R and D Tax Credits?
Research and development tax credits is an incentive where UK Limited companies can receive a reduction or rebate on their corporation tax for monies spent on eligible R&D activities.
The research and development (R&D) tax credits incentive was established by the Government in 2000, supporting businesses of all different sizes to grow and helping the UK economy to grow through innovation.
How do I make an R and D Tax Credit Claim?
First you need to ensure you qualify for the incentive. Then you need to produce the technical reports, evidence and calculations to support your claim. This can be quite intensive and if you make any mistakes you may run the risk of HMRC asking for additional information.
Alternatively, you can contact a specialist tax advisory firm such as ourselves who not only produce all of the above, will walk you through the process and safe guard you and your company to make sure you stay compliant.
How long will it take to receive an R and D tax credit repayment?
HMRC aims to deal with 95% of payable tax credit claims
within 28 days of receiving the claim. There are certain times of year or situations that increase this time such as popular years like March & December or when HMRC is under increased workload pressure such as furlough etc.
R&D Tax Credit Calculator
This calculation is intended as a rough guide
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Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.
GOT A QUESTION?
Eligible R&D Tax Credits Sectors
Software Development
Agriculture
Pharmaceutical & Science
Manufacturing & Engineering
Construction
Transport & Logistics
Is your business eligible for R&D Tax Credits?
Which Area Of The R&D Tax Credits Incentive Is Right For Me And My Business?
SME Scheme R&D Tax Credits
Based on £100k of R&D Costs you could potentially receive
RDEC Scheme R&D Tax Credits
Based on £100k of R&D Costs you could potentially receive
Still unsure which R&D Tax Credits incentive is right for you?
WHAT WE OFFER
When appointing a Tax specialist to act on your behalf, it’s important to know that you’re in good hands. You need to know that the advisor you appoint has the experience, skills and courage required to achieve the best possible outcome for you.
Our role is as much about supporting our clients personally as it is about providing professional and effective Tax representation. This is why we have implemented facilities such as flexible payment options , that aim to make the process straight forward and stress free.
Have you received a notification of HMRC investigation?
BOOK A CONSULTATION
Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.