{"id":25320,"date":"2020-01-07T17:18:41","date_gmt":"2020-01-07T17:18:41","guid":{"rendered":"https:\/\/www.outsourcedacc.co.uk\/?p=25320"},"modified":"2020-01-07T17:18:41","modified_gmt":"2020-01-07T17:18:41","slug":"research-and-development-tax-relief","status":"publish","type":"post","link":"https:\/\/www.outsourcedacc.co.uk\/blog\/research-and-development-tax-relief\/","title":{"rendered":"Research and Development Tax Relief"},"content":{"rendered":"<p>The Research and Development (R&amp;D) reliefs was introduced by the UK government in 2000.<\/p>\n<p>Its aim is to support companies that work on innovative projects in science and technology. It can be claimed by a range of companies that seek to research or develop an advance in their field.<\/p>\n<p>You may be able to claim Corporation Tax relief if your project meets HMRC definition of R&amp;D.<\/p>\n<p>The tax relief is a valuable source of cash for businesses to invest in accelerating their R&amp;D, hiring new staff and ultimately overall growth for the business.<\/p>\n<p><strong>How do R&amp;D tax reliefs work?<\/strong><\/p>\n<p>Companies that spend money developing new products, processes or services; or enhancing existing ones, are eligible for R&amp;D tax relief. If you\u2019re spending money on your innovation, you can make an R&amp;D tax credit claim to receive either a cash payment and\/or Corporation Tax reduction. The scope for identifying R&amp;D is huge \u2013 in fact, it exists in every single sector.<\/p>\n<p>if you\u2019re making a claim for the first time, you can typically claim R&amp;D tax relief for your last two completed accounting periods.<\/p>\n<p><strong>What costs may qualify for R&amp;D tax credits?<\/strong><\/p>\n<ul>\n<li>Staff Costs, including salaries, employer\u2019s NIC, pension costs and staff reimbursed expenses.<\/li>\n<li>Subcontractors costs and freelancers costs.<\/li>\n<li>Materials and consumables including heat, light and power that used by the R&amp;D process.<\/li>\n<li>IT or software investments for the R&amp;D process.<\/li>\n<li>Costs for clinical trials.<\/li>\n<\/ul>\n<p><strong>How far back can R&amp;D tax relief be claimed?<\/strong><\/p>\n<p>If you\u2019re making a claim for the first time, you can typically claim R&amp;D tax relief for your last two completed accounting periods.<\/p>\n<p><strong>What R&amp;D tax relief scheme is right for you?<\/strong><\/p>\n<p>What scheme will largely depend on if you are an SME or a large company.<\/p>\n<p><strong>SME:\u00a0 <\/strong><\/p>\n<p>Less than 500 staff;<\/p>\n<p>not more than \u20ac100 m turnover or \u20ac86 m Gross Assets.<\/p>\n<p><strong>Large company:<\/strong><\/p>\n<p>More than 500 staff;<\/p>\n<p>either more than \u20ac100 m turnover or \u20ac86 m Gross Assets.<\/p>\n<p>A large company normally uses Research and Development Expenditure Credit (RDEC).<\/p>\n<p>A SME will make a claim via the SME R&amp;D tax credit scheme.<\/p>\n<p>Sometimes, a business needs to use combined schemes to claim R&amp;D tax reliefs.<\/p>\n<p><strong>Important facts on R&amp;D tax relief<\/strong><\/p>\n<ul>\n<li>It can be claimed on unsuccessful projects.<\/li>\n<li>They are different schemes, choose a right one for the business.<\/li>\n<li>SMEs are able to claim up to 33p for every \u00a31 spent on qualifying R&amp;D activities.<\/li>\n<li>Large companies are able to claim up to 10p for every \u00a31 spent on qualifying R&amp;D activities.<\/li>\n<\/ul>\n<p>If you think you have R&amp;D expenditures in the business, and they might be eligible for tax relief.<\/p>\n<p>Please come to discuss with us. One thing is certain: the tax relief is a valuable source of cash for businesses to invest in accelerating their R&amp;D, hiring new staff and ultimately overall growth for the business.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Research and Development (R&amp;D) reliefs was introduced by the UK government in 2000. Its aim is to support companies that work on innovative projects in science and technology. It can be claimed by a range of companies that seek to research or develop an advance in their field. You may be able to claim [&hellip;]<\/p>\n","protected":false},"author":12312400,"featured_media":25321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[19],"tags":[195,196,197,47],"_links":{"self":[{"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/posts\/25320"}],"collection":[{"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/users\/12312400"}],"replies":[{"embeddable":true,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/comments?post=25320"}],"version-history":[{"count":0,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/posts\/25320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/media\/25321"}],"wp:attachment":[{"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/media?parent=25320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/categories?post=25320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.outsourcedacc.co.uk\/wp-json\/wp\/v2\/tags?post=25320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}