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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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Posted 2015-10-08 10:09:24

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