Year-end 31st December?
Don’t forget, with all the election commotion, if your business’ year-end is 31st December; you’ve got only eight weeks to claim for qualifying R&D activity undertaken in 2017. Use it or lose it!
R&D tax credit claims can be backdated for up to two years after the end of the financial year during which the R&D activity itself took place – meaning a claim can theoretically be made anywhere up to three years after the activity.
What are R&D Tax Incentives?
R&D Tax Incentives were designed to encourage UK companies to invest in innovation. Take a look at the Government’s website for more information.
The definition of R&D for tax purposes is broader than you might think
Did you know that many emerging technology R&D activities qualify for generous tax relief?
The definition of R&D for tax purposes is much broader than you might think. It’s highly likely that some of the challenges that you face on a day-to-day basis could qualify as eligible expenditure for this tax relief. For example:
- Complex business processes & programme logic
- Performance optimisation
- Responsive web apps
- Data quality
- Reverse engineering
- High-Performance Computing
- Statistical modelling & programming
- Legacy migration
- System integration
- Communication protocols
How do R&D incentives work?
For small and medium enterprises (SMEs), the R&D incentive comes in the form of a Corporation Tax tax relief that can reduce a company’s tax bill if liable for Corporation Tax, or can result in a payable tax credit.
Our team of specialists are more than just tax and accounting professionals; many have worked in the technology sector themselves. They can understand your business processes and manage a claim with HMRC for you.
If you would like us to see whether you have any qualifying activities, please get in touch.