R&D tax incentives (also known as R&D tax credits or R&D tax reliefs) are a valuable source of funding for innovative businesses. But even now, when businesses need cash more than ever, there are so many companies out there that don’t realise the extent to which what they do qualifies. “Research & Development” continues to conjure up images of rocket science and pharmaceuticals; creating a mindset that sets the bar too high when it comes to eligible activities.
That’s why we’ve made this quick questionnaire to set the record straight. Take a read and find out if you’re eligible for R&D tax incentives today. We think you’ll be pleasantly surprised.
Are you a limited company and subject to UK corporation tax?
If the answer is “no” to either of these, you won’t be eligible. This is because you have to be a limited company and subject to UK corporation tax in order to claim R&D tax credits.
Have you tried to develop something COMPLETELY NEW within the last 2-3 years?
If you have used science or technology to design new tools, products, or services then you could be eligible for R&D tax credits. This includes all sorts of things, from designing new devices to adapting services.
Have you tried to ENHANCE EXISTING PRODUCTS within the last 2-3 years?
Have you made a product lighter, more eco-friendly, or stronger? If you have made technical changes to products and made them measurably better in some way, you could be eligible for R&D tax relief.
Have you IMPROVED PRODUCTION processes within the last 2-3 years?
If you’ve found a way to be more efficient in production, be that reducing energy consumption or resource use, you could be in line for R&D tax relief.
Have you EXPERIMENTED a lot within the last 2-3 years?
Have you been testing or prototyping products or experimenting with new equipment or production processes? There’s a good chance you may be eligible for R&D tax credits if your answer is “yes”.
Did any of your projects or experiments FAIL within the last 2-3 years?
Businesses often overlook failures as being eligible for R&D tax relief. But if you’ve changed something (anything) around what you make or how you make it and there have been challenges along the way, you could still be eligible – regardless of how that experimentation turned out.
If you answered “yes” to Question 1, and “yes” to at least one of the other questions, it’s well worth looking into R&D tax credits. You can try our quick R&D Cash Generator Calculator to get a rough estimate of how much you could stand to gain. Then, depending on the size of your business and whether you’re profit or loss-making, you will either receive your support as cash credits or as a tax break.
Want to find out more about R&D? Our R&D tax specialists would love to chat. They’ve already put back over £36m into our clients’ businesses since 2017, and they’ve uplifted plenty of old claims done by other advisers, too. Our work has helped our clients pay for new equipment, new buildings, expanding their team, or even their other accountancy fees. All in all, it helps to keep businesses growing, innovating and moving forward. And that’s what we’re all about. Get in touch today.
If you’re interested in finding out if you could claim these generous R&D tax credits, or if you’d like a second opinion on a claim you’re already making, we’d love to discuss it with you.