Are you claiming your R&D tax credits?
The R&D Tax Credit scheme is aimed at enabling SMEs to recover development costs invested in innovative product and manufacturing processes.
Over £1.4bn was given back to 15,930 UK companies in the 2012-13 tax year but 150,000 companies potentially qualify.
How do you qualify?
To qualify you need to be a UK Limited Company that has been in business for at least 12 months and do any of the following:
* Design and produce new products.
* Regularly change the way you make your products.
* Develop or improve your manufacturing processes or services.
* Develop or appreciably improve materials or devices.
* Develop samples, prototypes or undertake testing.
* Develop software, IT solutions or products in-house.
* Invested in failed projects or developed products not launched.
* Employ any staff with a technical or scientific background.
* Do you employ fewer than 500 people? More than 500 qualifies for the large company scheme.
Qualifying expenditure
* Internal staff costs
* Sub-Contracting costs
* Consumable costs which relate to development work
* Prototypes and expenditure related to manufacturing trials
* Utility costs including heat, light and power
* Failed projects count towards the scheme
You can claim back two financial years and your current year which could potentially deliver significant and timely cash injection for your business. A claim can then be made every year going forwards.
The average annual claim value is £46,000 pa for SME's, and for large companies it's £320,000 pa.
For more information visit:
https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief
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