Doing Taxes The Right Way
R&D Tax Credits
There are those costs that businesses incur for the development of products, processes, software and services. These can be claimed by the business back in form of tax deductions and cash repayments. These are the R&D tax credits, a corporation tax deduction or at times can come as cash payments from the HMRC. To ensure that you get the maximum of these benefits and R&D tax credits, it will be advisable for you to consider getting the services of the professionals in tax preparation.
By far and large, the R&D tax credits are basically designed and purposed for the sake to encourage innovation and as well increase spending in the research and development activities. The R&D tax credits scheme actually happens to be one of the schemes that has been seen as a sure and core incentive that has enabled the government encourage as much investment by companies in research and development projects. This scheme actually enables companies have recovered as much as 33.35% of what the company actually gets to spend on research and development projects and undertakings recovered in cash repayments through the HMRC.
It is often the case that a number of businesses do not quite realize that they actually qualify for R&D tax credits and even for those that realize this, they many a time fail to claim their full entitlement. In actual sense, the R&D tax credits scheme has been in existence for quite a long period of time, spanning over 15 years and quite a significant sum is recovered annually by a number of businesses. This is as well being enjoyed by a number of the SMEs as they as well have recorded high amounts of claims in a year.
In so far as the qualifications for R&D tax credits go, any company and in any industry stands eligible for these tax benefits. The key to determining whether or not a company will be qualified for making claims for the R&D tax credits is that they must actually be engaged in an activity that will see them result with an end that achieves an advancement in technology. In the event that your company may as well be involved in a risk project in innovating, improving or developing a process, a product, or a service then this is a kind of business venture that actually qualifies you for R&D tax credits.
As one of the ways and a test to help you determine if at all your undertaking actually qualifies for the R&D tax credits is by looking if at all your team actually faced some technological uncertainties when they started out the project.